Market Status(DeFi)
Over the past few years, the DeFi space has continued to grow with an increase in new applications, primitives, and protocols. This structure, as we have said, is moving towards a commercialized future financial system, and interest is beginning to surge in the crypto and non-crypto communities. DeFi trading volume has grown from zero to over $20 billion in total lock value (TVL) over the past year. Many DeFi projects require users to lock an asset (collateral) in order to obtain a loan, create liquidity in the market, or issue a new asset. These collateralized assets have created a metric for evaluating these applications, called Total Locked Value (TVL). With that in mind, we see DeFi Dominance (vs. Global) reaching a total of 1.4%. This shows that many cryptocurrency investors are taking advantage of newly accessible financial products. The increasing figure is mainly due to network development and applications and will attract more cryptocurrency traders. In 2021, the price of Bitcoin and Ethereum soared to billions of dollars in daily market size. As cryptocurrencies and blockchains become more commercialized for their existence and productivity, DeFi continues to grow globally and must replace traditional financial systems.
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