Decentralized finance, also known as DeFi, is a sector that is attracting an increasing number of investors, reaching a new historical high thanks to its innovative way of offering financial services accessible to all.
The year 2020 has been a unique year for the decentralized finance sector (DeFi). The interest that this innovative space has aroused within society has led to incredible growth in several aspects. The development of a large number of decentralized protocols that offer great profitability and attractive ways to generate profits and returns, in addition to easy access that includes the most disadvantaged sectors, has seduced a large number of users and investors who have entered this digital universe, and who in turn generate higher levels of confidence within this space.
Curiosity, interest, and trust of course translate into liquidity, and DeFi has attracted a lot of liquidity to its protocols. Since its emergence in 2017, much has happened in this ecosystem in terms of finance. At the time of writing, DeFi protocols hold more than $13,55 billion in their “Total Value Locked” (TVL), which represents the investments or deposited value of users within these decentralized ecosystems.
It may interest you: A look at the evolution of Decentralized Finance (DeFi)
New highs in DeFi
The $13 billion mark marks a milestone in DeFi history to date, as it is the first time these protocols have achieved this amount of value locked in US dollars. As DeFi Pulse shows, the $13 billion mark was surpassed a few days ago and has continued to grow thanks to increased activity on several of its flagship protocols.
Source: DeFi Pulse
Wrapped Bitcoin (WBTC), the Bitcoin token backed by the Ethereum blockchain, is one of those currently showing the greatest growth, followed by the Harvest Finance protocol which is also contributing to the rise in DeFi. In fact, the latter has a growth of more than 100% in recent days, going from being worth $473 million on November 10, to more than $XNUMX million. 909 million dollars at the time of this edition.
$3 billion for Uniswap
Likewise, Uniswap, one of the most popular and widely used DeFi protocols within this space, which functions as a decentralized bank, reached a new milestone in its history. In just over a month, Uniswap surpassed $3 billion in TVL, once again becoming the first DeFi protocol to reach and surpass a new level within decentralized finance.
In September, Uniswap took the top spot as the DeFi protocol to surpass $2 billion in TVL, and the arrival of its UNI token had a lot to do with this growth. When the launch of this token was announced, Uniswap had a TVL of $1,9 billion, and a week later it surpassed the $2 billion mark.
On the other hand, other protocols that are also showing great growth by capitalization are MakerDAO and Compound; the former is currently in second place with a TVL of $2,32 billion, while Compound maintains a value of $1,39 billion.
2020, the year of DeFi
The DeFi sector started this year with a TVL close to $660 million, and in less than 11 months it has grown by more than 2.000%. In mid-February, this ecosystem surpassed $1 billion, but it was not until the end of June that it began to grow exponentially and at high speed. By June 29, DeFi had surpassed the $2 billion mark, and in less than a month, the $3 billion mark. Since then, its growth has been simply astonishing, and although it was slightly affected during the month of October, when Bitcoin took hold in a new bullish trend, the sector is once again resuming its exponential growth, marking a new milestone in its history.
Continue reading: Good news sees Ethereum seeing big growth, but not DeFi
