Since the beginning of August, the total amount of locked funds in the project’s smart contracts has increased by more than 170% and exceeded $ 1.3 billion. What’s more, according to DeFi Pulse, the figure has doubled in the past two weeks. The reason for the growth was the announcement of the launch of a new Aavenomics protocol control testnet, as well as the emergence of credit delegation capabilities on the platform.
Core features helped Aave to raise over 100M USD in its first six months. Then, in just two months, this amount increased tenfold and exceeded $ 1 billion.
However, some experts disapprove of such hysteria around the DeFi market and believe that the sector will soon become hostage to its popularity.
Marketing lead at Messari, Connor Dempsey, believes that the rise in the price of the YFI token is due to an extremely fair launch of the project without hidden distributions of the asset between the developers and has no objective reason for the growth.
“Nevertheless, YFI is still a risky asset. Developer André Cronier wrote directly on Twitter “I’m testing in production”, which clearly demonstrates the lack of project auditing,” wrote Dempsey.
Dempsey also emphasized that a massive misunderstanding of what is happening around DeFi is growing in the cryptocurrency market, and this misunderstanding ultimately will not do anything good for those who decide to invest heavily in the rapidly emerging market.