The Decentralized Finance market, DeFi, recently reached the value of one billion dollars. This represents a new record for the industry.
This figure is worthy of recognition, especially when it is taken into account that in December its value did not exceed 700 million dollars. Which means that the DeFi valuation increased 300 million dollars in less than two months.
The DeFi figure is the measure of all cryptocurrencies held in projects that lend, cover, summarize, exchange or place bets with them. Specifically, in those operations where Ethereum smart contracts are used.
The new milestone was learned thanks to what is reported by DeFi Pulse in one of his paintings. Although the value fell a little and is currently quoted at 998 million dollars, it cannot be overlooked that the billion dollars were reached.
It is important to clarify that the figure of one billion dollars does not represent how much money people with DeFi earn. Its meaning is the level of commitment they have acquired with Decentralized Finance.
This “enclosed” guarantee is used in several protocols to make a wide range of bets. These include simple loans to complex derivatives.
The creator of the DeFi leader, Rune Christensen, said in this regard that:
“It shows that people around the world want to access more efficient and less biased money.”
For many members within the community it was a surprise that DeFi reached that assessment, even if it was for a short period of time.
In fact, Spencer Noon of DTC Capital made a statement about it:
“No other smart contract platform is approaching in terms of its developer mentality, tools and infrastructure, to the point where I don’t think DeFi can exist anywhere else today. And perhaps the most surprising thing is that we are finally seeing a credible case for ETH will accumulate a long-term monetary premium as the only type of truly reliable collateral in decentralized finance.
However, some say that this is not something so surprising. Since the number comes mainly from ETH, which currently represents 70% of the DeFi value. The problem is that depending so much on a cryptocurrency can make the figure somewhat misleading due to volatility.
In other words, a sharp increase in ETH prices could increase the value of DeFi, even if no one invested more money. Coincidentally, the cryptocurrency showed a 21% increase in the last week.
Despite this possibility, DeFi continues to celebrate this “early birthday” in style.
I am a student of International Studies, interested in new technologies and their impact on the world. Faithful believer that tenacity is the basis of success.