Decentralized Finance (DeFi) has been recorded in the last months of tremendous growth. Some of the tokens increased by one hundred times, and many investors became overnight millionaires. The Hype is coming to the end or we are at the beginning of a financial revolution?
According to CoinGecko has grown, the market capitalization of all DeFi projects since the beginning of the year of just $ 20 billion to the editorial deadline of just under $ 93 billion.
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Alone in Ethereum the DeFi protocols-managed capital since 1 is. January 2021 from USD 16 billion to 44 billion USD has risen.
Many that are first encountered in the last few months on the sector, questions, currently, whether DeFi is a bubble – according to the Motto “What Goes up Must Come Down”. Anthony Sassano, an early Ethereum Investor and supporter of various DeFi projects, is of a different opinion. He still sees plenty of potential for the young sector.
Sassano arguedthat the current DeFi-user numbers are still tiny compared to centralized exchanges and the traditional financial world. In some categories, the projects would exceed their centralized counterparts, so Sassano. Moreover, Ethereum has not yet scaled once in a great style. In addition, DeFi for new people is still a very complex field.
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Very few people understand Decentralized Finance. In addition, many DeFi put shoes-projects still in the children.
Therefore, Sassano is of the opinion that Decentralized Finance a lot of potential for growth has.
All in all, the total addressable market for decentralized financial applications, every single human being on the planet earth – 7.8 billion of us – all of which will eventually have access to DeFi, as long as you have some Hardware, and an Internet connection.
Sassano is convincedthat we are only at the beginning of a Revolution. Ethereum and DeFi should create it to be a decentralized, permission-free, and censorship-resistant financial system for the world, then the entire market could grow even more.
DeFi-fight: sushi swap outdated Uniswap
An event has taken care of this week, particularly for headlines in the DeFi Space. The decentralized exchange (DEX) sushi swap (SUSHI) has overtaken this week, the Total Value Locked (TVL) of Uniswap (UNI).
The TVL is, how much capital is tied up in a DeFi Protocol as a whole. So all of the individual Liquidity form for decentralized exchanges, for example, swimming Pools for the respective trading pairs together the TVL of the Protocol. The first place among the largest DEXs on Ethereum sushi swap now with a TVL of $ 4.58 billion. The second place Uniswap with a TVL of 4.26 billion US dollars. What is it and why DEX need a high TVL?
TVL alone does not make a DeFi-king
The more liquidity combines a DEX on, the better the conditions for traders. The reason is that Slippage Fees significantly lower, if the liquidity is in the respective Pools higher.
Sushi swap is a Fork of Uniswap, but since the spin-off, the project has gone his own way. As Liquidity provider on sushi swap SUSHI tokens in addition to the rewards from transaction fees, the DEX in the last months a lot attract capital – from Uniswap users.
Nevertheless, you must not say that the TVL statement alone is strong for the success of a DeFi Protocol. To Uniswap recorded almost daily trading volume, the significantly greater as a sushi swaps. So Uniswap was, in spite of lower TVL, within the last 24 hours, over 500 million US dollars. Sushi swap put during the same period only 116 million dollars to. This is partly due to the fact that Uniswap to more users as a sushi swap has. In addition, Uniswap is integrated lower overall in the entire DeFi Ecosystem of Ethereum.
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