The decentralized finance (DeFi) segment continues to develop actively. The meteoric rise in the price of some native tokens of DeFi projects resembles the enthusiasm around the ICO boom. DeFi currently comprises over $ 7 billion in digital assets. The growth of the past two months is fantastic – it reached 271%.
If it grows at the same speed further, the capitalization of DeFi will reach 27 billion USD by the end of the year. And it’s much taken into account the whole cap of the cryptocurrency market, which is $370 billion.
If the taken rate of increase in the conditional “capitalization” of DeFi continues, then by the end of the year the sector may “grow heavier” to at least $ 27 billion, leaving more room for further growth. The fact is that the entire capitalization of the cryptocurrency market is about $ 370 billion.
At the same time, the segment demonstrates an indicator of high concentration. In total, six leading projects account for over 90% of all cryptocurrencies that circulate in DeFi. Aave has taken the first place now, which reached $ 1.51 billion USD in digital assets. MakerDAO and Curve Finance have taken the second and the third place, correspondingly, with indicators of 1.42 and 1.15 billion USD.
Then follows yEarn Finance with 845M USD, Synthetic with 851M USD, and Compound with 797M USD. The ranking changes dynamically in DeFi world. It’s also worth reminding that aAve has received a license from the British regulator.
DeFi reminds us of ICOs as well. The recent collapse of the tokens of the Yam Finance project led to losses of 750 thousand dollars. Several platforms are facing cyber attacks, which happened to the DForce project in April. Exotic DeFi startups are emerging, such as Spaghetti.money, which raised $ 500 million in assets in less than 36 hours – the founder of Compound expressed skepticism about this project.
One of the key figures for the Ethereum altcoin, Vitalik Buterin, advises everyone who wants to invest in DeFi to assess all the risks.