DeFi mania might have subsided, but the influx of capital into the ecosystem has not. Along with their centralized counterparts, these decentralized platforms are slowly becoming essential in attracting attention to many promising projects. It is needless to say that the market has grown by leaps. In fact, DeFi saw an astonishing increase in terms of the value locked by more than 50x in the past 12 months alone.
In yet another development, the TVL [USD] across various decentralized finance projects has surpassed $60 billion on the 16th of April. This was according to the latest chart published by DeFi Pulse.
The figure took a plunge a few times in between, especially in the first week of this month, but has made a strong recovery this week and was now found to be hovering quite close to its peak. Amidst the chaos of the ongoing bull run, institutional entries, the DeFi ecosystem has been quietly flourishing to levels never seen before.
Diving Deep Into DeFi
To put things into perspective, USD denominated volumes for decentralized exchanges [DEX] have increased by 65 times what they were this time last year. It was also found that the trade volume on these DEXs, denominated in USD, has risen more than 50 times what it was last year.
With this, the global crypto market cap has also appreciated over 10x since then. Decentralized finance’s adjusted growth rate was, however, down from 10x between the years 2019 and 2020. This was revealed by Bison Trail’s Protocol Specialist, Elias Simos who tweed that “DeFi is roaring back”.
Talking about the rise of the sector, Simos went on to add,
“If you told me in April 2020 that DeFi would be posting these kinds of numbers in a year, I would have told you maybe 2023. Yes, reflexivity plays a huge part in it all. But the growth rates are persistently high when you look at pockets that are somewhat insulated from it.”
The DeFi marketplaces are constantly shifting and evolving. On further gauging the space, it was that the space is anticipating yet another bull season with major asset management funds and high-street financial institutions are now getting involved. The launch of DeFi ETFs demonstrated the increasing interest among high-value clients, corporates and institutions.
