Categories: Cryptocurrency

DeFi outperforms crypto markets hitting $1.5 billion all-time high

Share

Decentralized finance (DeFi) markets have been on fire recently, outperforming the majority of digital assets that they are based upon.

Cryptocurrency markets have been flat all weekend with very little movement out of a sideways channel that they have been trading in for most of this month.

Bitcoin has failed to break resistance at US$9,400 [AU$13,662] and its brethren have been lethargic. Total crypto market capitalization has been hovering around the $265 billion level for the past week.

The same cannot be said for decentralized finance (DeFi) markets, however, as they surge to a new all-time high in terms of total value locked.

DeFi is a crypto-based lending and borrowing ecosystem that is largely based upon Ethereum and its smart contracts. It provides bank-busting interest rates on stablecoins and various crypto assets.

Over the weekend, a new all-time high of $1.5 billion was reached in terms of USD total value locked as collateral across all DeFi markets, according to DeFi Pulse.

Chart – defipulse.com

The majority of this has been driven by the Compound Finance platform and its COMP token distribution to users of the protocol.

Token distribution began last Monday, and in the past seven days, COMP prices have surged from virtually nothing to top $300.

Users gain a fraction of the 2,880 tokens allocated every day by making crypto deposits or taking out a collateralized loan in what has been termed liquidity mining.

Analysts have been quick to label it a bubble, but the organic growth of DeFi over the past year or two suggests that it is here to stay.

Images courtesy of DeFi Pulse/Chart Screenshot, Burak K/Pexels

Martin Young

Martin has been writing on technology for 15 years, he has a keen eye for emerging cryptocurrency news, blockchain developments, and market sentiment.

Published by
Martin Young

Recent Posts

Daniel Andrews plans pilot for casual workers’ sick pay but Morrison government critical

The Victorian government plans a pilot scheme for up to five days sick and carer’s…

19 hours ago

Physio, chiro, osteo and myo: what’s the difference and which one should I get?

Many of us might not be as fit as we were before the pandemic hit,…

19 hours ago

What matters is the home: review finds most retirees well off, some very badly off

The government’s Retirement Incomes Review paints an encouraging picture of the finances of retired Australians.…

20 hours ago