The mind-blowing DeFi growth is surprising many investors who are watching with awe as the sector charts new heights. The total value locked in the DeFi has now touched a whopping $8.68 billion and no stopping it. Aave is leading the race but Curve Finance is closing in fast. Also, Uniswap and Synthetix are not far behind in terms of growth.
DeFi growth is touching new heights
DeFi growth has dominated the year 2020. The sector added $3 billion in total value locked in assets in a short span of two months. However, in August, the total value locked in assets has grown to a massive figure of $8.68 billion. Such growth numbers are staggering even by crypto standards.
The top players behind this explosive DeFi growth are Aave, Curve Finance, Maker, and Balancer with each one of them sporting a market cap that exceeds $1 billion. Other notable mentions include Syntheix and Uniswap.
Now, crypto exchanges have also jumped in on the bandwagon. DeFi futures products have been launched by Binance and FTX to make the most out of this rising phenomenon. Voyager Digital, a crypto brokerage firm, has launched interest payouts for KNC, and BAT tokens. So, there’s lots of potential in DeFi as envisioned by the big players.
Rising liquidity and volume are also supporting the upcoming boom in the sector. Uniswap saw its liquidity double in a mere 24 hours to cross $650 million. In terms of DEX volume, Uniswap is ahead of the pack while Curve and Balancer are next in line.
DeFi projects are entering the bubble stage
There’s a new DeFi project launched every other day. What’s surprising is that the pace at which some of them make money is also rising. Today, there are far more projects launched in DeFi compared to traditional crypto projects.
Sushi is a prime example of how fast projects earn money here. SushiSwap is a version of Uniswap and provides more user-friendly features including Sushi token. Close to $357 million has already been pumped into the project. Sushi token, on the other hand, experienced a wild ride from $168.9 to just $1.1 in a short period.
For many investors, the wild DeFi growth may turn frothy at any time. However, all the projects launches are pointing towards a new high for the DeFi sector.
