In the history of the crypto world, the year 2020 will probably be remembered as the year of decentralized finance (DeFi). So far, we have witnessed a real boom in the sector, which has allowed it to increase its value exponentially in a very short time. That is why, as part of Indonesia Blockchain Week 2020, CoinMarketCap CEO Carylyn Chan is providing updated figures on DeFi.
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The growth of DeFi
In recent months, it has become common among analysts of the crypto world to compare the boom in the decentralized finance sector with the boom experienced by the Initial Coin Offerings during 2017.
When in the midst of the fever generated by that year’s great Bitcoin rally, the number of ICOs and the money raised by them multiplied several times over. With projects like Binance being launched thanks to this method.
Similarly, the crypto market is currently experiencing a DeFi fever. With new platforms being launched constantly and with crypto currencies dedicated to this sector increasing several times their value. As even giants like Binance and Tron enter the DeFi, considered by some of the main crypto influencers as the future of the market.
Thus, as CoinMarketCap CEO Carylyne Chan commented, in just three months the value of the DeFi sector has increased by 291%. It went from $3.4 billion in market capitalization at the beginning of June to $13.4 billion today.
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CoinMarketCap shows the situation of the sector
In this sense, the growth of DeFi has been driven mainly by a group of platforms, which have seen their value multiply. The main one is Chainlink, a crypt-currency that dominates 45% of the entire decentralized finance sector. While the other major DeFi platforms share the value more or less equally among themselves.
Thus, when observing the performance of the main DeFi platforms in recent months. We see how the value of all of them has increased significantly, with Chainlink well ahead of the rest. Followed by yEarn-Finance, Aave, Ampleforth, Band Protocol and finally Just, the platform created by Justin Sun.
This trend is repeating itself in Asian markets. Where DeFi have also experienced a major boom in recent months, led in the region by Aave and Just instead of Chainlink. This shows how the increase in the value of decentralized finance is a theme that repeats itself across the globe.
With these figures, CoinMarketCap would be providing us with a better view of the DeFi sector and its dominant platforms. And above all, of the impressive increase in their value over the last few months. If this trend continues through the remainder of 2020, it could consolidate decentralized Iq Option finance as the next big product to come out of the crypto market. And, without a doubt, as the future of the international financial system.