Decentralized Finance (DeFi) has been the talk of the crypto community since the beginning of the year and August has shown to be the best month in terms of DeFi adoption.
With the success that has been recorded in the decentralized finance sector reverberating across the global markets, DeFi adoption has been on the increase. With the rate at which DeFi tokens are making waves, developers of these projects have no plans to slow down soon.
During the whole of August, over 500 coins have made their entrance into the DeFi space. With the entrance of each token comes another buzz in the media about the sector which has cast bubbles of doubts over the legitimacy of the sector.
Bloomberg notes that the majority of the projects lacks utility
According to a report by high ranking website, Bloomberg, CoinMarketCap was the major interested party in the decentralized finance craze as it listed nothing less than 500 token coins.
The report stated that the majority of these new tokens lack real utility but investors are not buoyed as they have pumped millions of dollars into each project they find interesting. The major factor behind the influx of investors is the profit that the majority of them have been able to gain which has seen DeFi adoption rival Bitcoin adoption.
DeFi adoption skyrocket as a result of the lending sector
The main aim of this sector is to eliminate all financial outfits as it looks to provide major services like lending and borrowing to its clients. So therefore about half of the total DeFi projects are focused mainly on lending services as well as derivatives trading.
The lending in the sector has been an integral part of the DeFi adoption craze as it has contributed to the majority of the coins making the news. The lending sector allows the client to earn rewards for every token they have locked down. Presently, decentralized finance sector boasts of $3.8 billion locked down.