There is good news in the crypto industry as DeFi crosses $100 billion in assets value to set a new record. DeFi has consistently grown in popularity for years now, and it appears that the financial value is now matching up to that popularity. The $100 billion assets value was calculated with a simple formula. The formula calculates the total value by multiplying the balance of all assets on smart contracts built on Ethereum by their collective dollar value at that time. This marks the first time that DeFi would hit the $100 billion mark.
This was contained in a report provided by DeFi Pulse on data obtained from the DeFi platforms. DeFi Pulse noted that the steady rise of bitcoin is partly responsible for the startling figure obtained on DeFi. Bitcoin has sustained a bullish run for weeks now and hit a new ATH of $66,976 today. Ether, the network of choice for DeFi, rose to $4208.51 as of the time of writing, representing a 6.76% change in 24 hours. Both tokens are primed for higher prices before the year ends, as predicted by crypto analysts.
The Rise of DeFi
DeFi is a huge part of the cryptocurrency that offers unrestricted access to financial activities on the Ether network. Users can exchange tokens, buy or sell them, lend or borrow, and engage in staking. DeFi is not subject to regulation and all transactions performed on DeFi are safe from third-party intervention unless permitted.
It provides an open and decentralized platform where anyone can perform traditional financial activities quickly and easily.
There has been a steady rise in cryptocurrency use and adoption as more people seek to hedge against inflation and find extra sources of income. DeFi solutions offer lending, borrowing, staking, and exchanges which anyone can take advantage of to make money. DeFi Pulse reports that the general lending volume increased to 50.7 billion dollars last week, showing an approximate increase of 15% from the previous value. Decentralized Exchanges (DEX) also experienced an 8% increase in exchange volume, growing from 194,130 to 209,575.
The use case of a token is partly responsible for its market value. This may explain why the value of Ether is increasing; the volume of ethereum used for DeFi transactions increased by at least 3.5% over the last week. DeFi has a market capitalization of $159.4 billion as of press time, hitting an increase of 4.42% in 24 hours.
DeFi a Safe Way Out of Crypto Ban
After China banned crypto trading, it was reported that more Chinese traders turned to DeFi for safety. Crypto bans do not affect DeFi in a basic sense, so users can explore a form of crypto trading on DeFi without flouting an express ban on crypto trading. DeFi adoption is expected to increase in the coming months with new projects lined up for launch. DeFi solutions to improve trustlessness and true decentralization while lowering transaction fees will surely help DeFi to surge beyond known levels.