The number of products, services and other platforms that have emerged from this growth is in the hundreds, and it is becoming difficult to keep up with them.
Decentralised finances (DeFi) continue to reach new records. Market capitalization reached $45 billion, its highest level ever, becoming responsible for nearly 30% of Ethereum’s $150 billion capitalization.
Ethereum cryptomoeda appears to have benefited from this surge, gaining considerably over Bitcoin recently, Aave and Uniswap tokens have exceeded $3 billion in market capitalization.
DeFi tokens appear to be taking a break from bullfighting today, but SushiSwap is trading in the $7 range, while Uniswap is well above its all-time record.
Interestingly, we have several new tokens at the top of the list, such as the cETH and cDAI, with the „c“ representing the tokenization of existing assets to perform functions within their own dapp.
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DeFi was one of the main trends in the blockchain market in 2020. In January last year the market was valued at only $680 million. By December 2020, the number had skyrocketed, reaching a total of $15.34 billion.
Now, a month later, capitalization has surpassed the $45 billion mark. The number of products, services, and other platforms that have emerged from this growth is in the hundreds, and it is becoming difficult to keep up. This unprecedented exponential growth has surprised experts and even critics around the world.
The traditional financial system is controlled by government through its regulatory agencies. These agencies present a long list of obstacles that sometimes make transactions expensive, tedious, and ultimately inaccessible to more than 25% of the world’s population.
Decentralized finance presents an alternative to traditional, centralized financial systems.
Some of the products and services that have accompanied the proliferation of the DeFi market are platforms that allow users to trade, invest and even receive loans.
These platforms usually have very low entry costs and are available to users anywhere in the world. Investment in DeFi is one such product that has advanced at the forefront of the revolution and shows no signs of decline anytime soon.
This entire ecosystem is being created on the Ethereum platform, which reached its record price this week.
There is still much room for growth, including in other blockchain platforms like Polkadot and Cardano.
It remains to be seen whether the growth is sustainable and which projects are solid until then.