TL;DR Breakdown
- DeFi has a market cap that is well over $35 billion.
- Blockchains like Polkadot already have their altcoins built on them.
Decentralized Finance (DeFi) has seen its Total Value Locked (TVL) increase to an all-time high at the beginning of the year. The increased usage of the industry has seen the value of the TVL increase massively. On CoinGecko, the DeFi market cap is over $35 million presently.
Interest in the two leading cryptocurrencies, Bitcoin and Ethereum, has considerably increased in recent times, especially as these assets’ value has increased. DeFi has also seen a surge in its interest by investors, which has led to an increase in its assets’ value.
Most of these projects are built on Ethereum. ETH 2.0 would help the network solve its scaling challenges and the current high transaction fee issue. This means that most of these projects would remain on Ethereum.
Other blockchains have already begun working on how they can get their slice of the decentralized finance space. Polkadot already has altcoins that are built solely on the Decentralized Finance blockchain.
Maker, Aave and other leading DeFi projects
The top DeFi asset is Maker, with over 17% of the market. This is according to data gotten from DeFi Pulse.
Maker is the governance token of the MakerDAO ecosystem, and it is complementary to the DAI stablecoin that is pegged to the US Dollars.
Another leading coin in the space is Aave. The asset has a TVL of over $3 billion. It is an open-source, non-custodial asset that allows decentralized lending and borrowing.
Synthetix is also a leading derivatives platform. Its users can create “Synths,” representing real assets that can be traded on the platform.
Other assets have enjoyed considerable growth as the sector favorably competes with the traditional financial industry. As the industry grows, it is expected that there would be increased adoption and usage of decentralized finance applications by the general public.
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