The TVL (Total locked value) of the decentralized finance (DeFi) applications has just now surpassed $1 billion value and that is the reason for celebrations. The Ethereum community is ecstatic though there are people who would want to wait for the true potential to be unveiled.
Within a few days though the price reduced a little and many vouched that the reality is different from what is being shown. Defipulse.com has confirmed that Maker is leading with 60% of the market share. This crypto network is assuming that role for defi that Bitcoin has assumed for the crypto market. Most of the other derivatives and trading protocols have been taking their ideas from Maker.
Defipulse has therefore acknowledged this achievement published a small blog on the occasion. It mentioned that one year ago this figure was a paltry $280 million and now reaching the $1 billion target is not a mean feat. The growth has been so exponential in the last 1 year that most of the Blockchains have been focusing their energy around supporting the Defi system.
Projects like Genesis network have created a throughput Blockchain of 15000 tips and a wallet that fulfills all your Defi needs. The top 5 Dapps in the market have used lending as a tool to breakthrough. This week itself Binance introduced the 13th phase of the new lending products it has launched. Offering different rates for USDT, BUSD, and ERD.
Apart from that other lenders like Cred and Sequilla are entering the marketplace offering the clients the convenience of having limited knowledge of the field and yet making money. Though the factors are clearly in favor still many people are refusing to believe that this figure is true.
On the other hand, Defipulse stands by the same and says that it monitors each and every transaction done on the network every day. It confirms that every hour they actually refresh the charts and then only move on to calculate the TVL for the day. This is the same way in which the market capitalization of Cryptocurrencies has been calculated until now.
However, again market cap has always been doubtful and users have protested over its credibility. Crypto legal commentator Preston Byrne says that the value being propagated isn’t the truthful picture.
He feels that nearly one-third of the same is from investors who don’t want to sell and have to pay the resultant tax on it. His argument seems authentic too and it would take some time for us to know the difference between the claim and the actual reality.
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