• Home
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • XRP
    • Litecoin
    • Altcoin
    • Cardano
    • Tether
    • DOGE
    • Solano
    • XLM
    • DOT
    • XDC
    • SHIBA
    • BNB
    • Ape
    • HBAR
    • QNT
  • Blockchain
  • Regulation
  • Market
  • Live
    • Prices
    • ICO
  • Meta
    • NFT
  • Technical Analysis
    • XRP
    • BTC
    • XLM
    • ADA
    • TETHER
    • ETC
    • ETH
    • DOGE
    • LTC
  • Exchange
  • Mining
Saturday, September 23, 2023
  • Login
  • Register
Coin24h.com
  • Home
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • XRP
    • Litecoin
    • Altcoin
    • Cardano
    • Tether
    • DOGE
    • Solano
    • XLM
    • DOT
    • XDC
    • SHIBA
    • BNB
    • Ape
    • HBAR
    • QNT
  • Blockchain
  • Regulation
  • Market
  • Live
    • Prices
    • ICO
  • Meta
    • NFT
  • Technical Analysis
    • XRP
    • BTC
    • XLM
    • ADA
    • TETHER
    • ETC
    • ETH
    • DOGE
    • LTC
  • Exchange
  • Mining
No Result
View All Result
  • Home
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • XRP
    • Litecoin
    • Altcoin
    • Cardano
    • Tether
    • DOGE
    • Solano
    • XLM
    • DOT
    • XDC
    • SHIBA
    • BNB
    • Ape
    • HBAR
    • QNT
  • Blockchain
  • Regulation
  • Market
  • Live
    • Prices
    • ICO
  • Meta
    • NFT
  • Technical Analysis
    • XRP
    • BTC
    • XLM
    • ADA
    • TETHER
    • ETC
    • ETH
    • DOGE
    • LTC
  • Exchange
  • Mining
No Result
View All Result
Coin24h.com
No Result
View All Result
Ledger Nano X - The secure hardware wallet
ADVERTISEMENT

The Smart Way to Talk About DeFi’s $22B

8 January 2021
in Blockchain
Reading Time: 3 mins read
A A
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter
cryptotrader
ADVERTISEMENT


Decentralized finance (DeFi), the sector of crypto that drove all the excitement this summer, isn’t quite back to its old energy, but the lull is over.

“Raw DeFi numbers are at all-time highs, and they’re not fake,” Alameda Research founder Sam Bankman-Fried told CoinDesk in an email. “But in relative terms to the rest of crypto, they’re down from their peak but up from their nadir.”

From a casual glance, it can look like DeFi is stronger than it’s ever been. Judged by the sector’s favorite metric, total value locked (TVL), the sector has been adding about a billion dollars worth of additional value per day since the new year started – from $15.67 billion to $22.35 billion as of this writing; however, a lot of that growth has been driven by the simple fact of asset prices going up across the board.

“TVL isn’t the best indicator when ETH and all other crypto is green for weeks,” Jesse Walden, founder of the venture firm Variant, told CoinDesk in an email.

ETH, the asset that powers DeFi, traded at $737 on Jan. 1, rising to $1,182, as of this writing. 

In other words, ETH is up a bit over 60% and DeFi is up a bit over 40%.

DeFi will be booming again when a lot more assets get locked in there. It seems clear that most of the uptick in value can be attributed to asset price increases, but that’s not the whole story. 

“Uniswap alone is settling around $1 billion daily, so I think the ecosystem is growing no doubt,” Walden noted.

Look to the stablecoins

A good way to baseline DeFi upticks is by checking action specifically in stablecoins, since they don’t tend to get skewed wildly by price volatility.

DeFi money market Compound kicked off the DeFi craze and yield farming on that application is still going strong. Its website makes it easy to check deposits over time.

Looking at the big three stablecoins – USDT, USDC and DAI – only USDT has really been inching up on Compound, but it also has by far the smallest deposits. 

Tether’s stablecoin has risen from a mere $91.5 million on Jan. 1 to $146 million today. Meanwhile, DAI has basically hovered a bit above $1 billion and USDC has in the area of $800 million that whole time. Nothing very exciting happening there, which probably stands as something of a bellwether for the real action in the space.

Blockchain consultant Maya Zehavi agreed with comments above. “My opinion is that DeFi just increased leverage in the system a bit, say 5%,” she wrote via text message. “The rest is just price appreciation.”

If it’s not obvious, for those who believe the rally is going to keep going, borrowing more of the rising asset can be a good way to lock in more gains. “In general, during bull market, more users are collateralizing to borrow to leverage their positions on ETH,” Stani Kulechov of the money market Aave (a protocol which turned one-year old today) told CoinDesk over Telegram.

Kulechov shared data with CoinDesk that showed over $1.5 billion dollars worth of new deposits on Aave versions 1 and 2 combined. By far the biggest intake has been in ETH itself, with more than $450 million in new ETH deposited into Aave in 2021 alone.

After all, once someone has reached a position they believe they can afford, they might as well deposit it somewhere that it can earn just a little more while they wait for prices to moon. 

Pantera Capital partner Paul Veradittakit told CoinDesk via email that the investment firm is closing a lot of new deals in DeFi. 

“We believe that DeFi will drive the ecosystem forward and that’s our thesis,” he said. “Decentralized trading has eclipsed centralized trading periodically and will continue to grow proportionately while use cases around synthetic assets, algorithmic Stablecoins, and lending/borrow are very promising.”



Source link

Related articles

Bitcoin Holding Above $26K Is ‘Remarkable’ as Equities Take a Hit. What’s Next for BTC’s Price?

Bitcoin Holding Above $26K Is ‘Remarkable’ as Equities Take a Hit. What’s Next for BTC’s Price?

22 September 2023
AI Should Be Decentralized, But How?

AI Should Be Decentralized, But How?

22 September 2023
Cryptohopper
ADVERTISEMENT
[crypto-donation-box]
Tags: 22BDeFisSmartTalk
Share76Tweet47
Ledger Nano X - The secure hardware wallet
Previous Post

Price analysis 1/8: BTC, ETH, XRP, LTC, ADA, DOT, BCH, XLM, LINK, BNB – Cointelegraph

Next Post

Ripple (XRP) Closes Prior Hour Up 0.25%; Heads Down For the 5th Consecutive Day, But Still in an Uptrend Over Past 90 Days

Related Posts

Bitcoin Holding Above $26K Is ‘Remarkable’ as Equities Take a Hit. What’s Next for BTC’s Price?

Bitcoin Holding Above $26K Is ‘Remarkable’ as Equities Take a Hit. What’s Next for BTC’s Price?

22 September 2023
0

The 200-week and 200-day moving averages converge at $27,800, acting as an obstacle to further BTC price gains. Source link

AI Should Be Decentralized, But How?

AI Should Be Decentralized, But How?

22 September 2023
0

The case for greater transparency and verifiability in AI. But is decentralization the best way to achieve that and is...

CFTC Denies Kalshi’s Plan to Let Users Bet on Control of U.S. Congress

CFTC Denies Kalshi’s Plan to Let Users Bet on Control of U.S. Congress

22 September 2023
0

Regulators said the plans weren't in the public interest, after a court squabble involving rival service PredictIt Source link

First Mover Americas: Bitcoin Vapid; Toncoin Leads Weekly Gains

First Mover Americas: Bitcoin Vapid; Toncoin Leads Weekly Gains

22 September 2023
0

The latest price moves in bitcoin (BTC) and crypto markets in context for Sept. 22, 2023. First Mover is CoinDesk’s...

Sam Bankman-Fried Sort of Had a Rough Day

Sam Bankman-Fried Sort of Had a Rough Day

22 September 2023
0

Yesterday was arguably not a great day for Sam Bankman-Fried. First, the judge overseeing his case rejected all seven of...

Load More
Next Post

Ripple (XRP) Closes Prior Hour Up 0.25%; Heads Down For the 5th Consecutive Day, But Still in an Uptrend Over Past 90 Days

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Categories

  • Altcoin
  • ApeCoin
  • Bitcoin
  • Blockchain
  • BNB
  • Cardano
  • Cryptocurrency
  • DOGE
  • DOT
  • Ethereum
  • HBAR
  • Litecoin
  • Market
  • Meta News
  • Mining
  • NFT
  • QNT
  • Regulation
  • SHIBA
  • Solano
  • Tether
  • Uncategorized
  • XDC
  • XLM
  • XRP

What’s New Here!

  • Ethereum Staking Momentum Falling, What’s Going On?
  • Americans (Seemingly) Aren’t Allowed to Put This Economic Theory to the Test
  • Shiba Inu (SHIB) Burn Rate Sees Exponential 627% Jump

Newsletter

  • About Us
  • Privacy Policy
  • Contact Us

© 2022 coin24h.com

No Result
View All Result
  • Home
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • XRP
    • Litecoin
    • Altcoin
    • Cardano
    • Tether
    • DOGE
    • Solano
    • XLM
    • DOT
    • XDC
    • SHIBA
    • BNB
    • Ape
    • HBAR
    • QNT
  • Blockchain
  • Regulation
  • Market
  • Live
    • Prices
    • ICO
  • Meta
    • NFT
  • Technical Analysis
    • XRP
    • BTC
    • XLM
    • ADA
    • TETHER
    • ETC
    • ETH
    • DOGE
    • LTC
  • Exchange
  • Mining

© 2020 coin24h.com

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • bitcoinBitcoin(BTC)$26,590.000.00%
  • ethereumEthereum(ETH)$1,595.090.42%
  • tetherTether(USDT)$1.000.02%
  • binancecoinBNB(BNB)$211.360.25%
  • rippleXRP(XRP)$0.510.79%
  • usd-coinUSDC(USDC)$1.00-0.01%
  • staked-etherLido Staked Ether(STETH)$1,595.860.60%
  • dogecoinDogecoin(DOGE)$0.0616120.30%
  • cardanoCardano(ADA)$0.244825-0.13%
  • solanaSolana(SOL)$19.430.11%
  • ToncoinToncoin(TON)$2.30-1.44%
  • tronTRON(TRX)$0.0832870.25%
  • Wrapped stETHWrapped stETH(WSTETH)$1,864.880.36%
  • polkadotPolkadot(DOT)$4.030.33%
  • matic-networkPolygon(MATIC)$0.520.38%
  • litecoinLitecoin(LTC)$64.64-0.10%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$26,583.000.05%
  • shiba-inuShiba Inu(SHIB)$0.0000071.15%
  • bitcoin-cashBitcoin Cash(BCH)$208.550.66%
  • chainlinkChainlink(LINK)$7.106.46%
  • daiDai(DAI)$1.000.07%
  • leo-tokenLEO Token(LEO)$3.860.46%
  • true-usdTrueUSD(TUSD)$1.000.05%
  • uniswapUniswap(UNI)$4.250.12%
  • stellarStellar(XLM)$0.1150750.97%
  • avalanche-2Avalanche(AVAX)$8.880.36%
  • moneroMonero(XMR)$145.22-0.34%
  • okbOKB(OKB)$43.010.14%
  • binance-usdBinance USD(BUSD)$1.00-0.04%
  • ethereum-classicEthereum Classic(ETC)$15.20-0.07%
  • cosmosCosmos Hub(ATOM)$7.13-0.41%
  • hedera-hashgraphHedera(HBAR)$0.0506220.73%
  • filecoinFilecoin(FIL)$3.230.51%
  • GGTKNGGTKN(GGTKN)$0.1121180.75%
  • lido-daoLido DAO(LDO)$1.490.65%
  • crypto-com-chainCronos(CRO)$0.0504870.92%
  • quant-networkQuant(QNT)$90.061.29%
  • internet-computerInternet Computer(ICP)$2.931.52%
  • MantleMantle(MNT)$0.393352-0.31%
  • vechainVeChain(VET)$0.0170760.15%
  • AptosAptos(APT)$5.150.86%
  • makerMaker(MKR)$1,285.52-0.83%
  • ArbitrumArbitrum(ARB)$0.842.53%
  • nearNEAR Protocol(NEAR)$1.12-0.12%
  • optimismOptimism(OP)$1.300.39%
  • EdgecoinEdgecoin(EDGT)$1.00-0.03%
  • KaspaKaspa(KAS)$0.0468023.60%
  • aaveAave(AAVE)$64.222.91%
  • Rocket Pool ETHRocket Pool ETH(RETH)$1,733.810.59%
  • BSCEXBSCEX(BSCX)$237.190.34%