Cryptoverse: DeFi dream is still alive
crypto projects has leapt in recent months, swept up by a rally in bitcoin driven by the launch of spot bitcoin ETFs in America.
The total value of tokens (TVL) deposited on DeFi-focused blockchains has risen by about 40% since November to about $60 billion, hitting its highest level since August 2022 last month, according to data provider DeFi Llama.
In an ironic twist, bitcoin's infiltration of the mainstream, centralized financial system has effectively powered risk-taking in the parallel decentralized crypto world.
«DeFi TVL rising is a proxy for rising speculation across the digital asset space, with people chasing the next narrative and the next hot thing,» said Austin Alexander, co-founder of bitcoin transaction focused firm LayerTwo Labs.
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View Details» Daily trading volumes on DeFi protocols jumped as high as $7.3 billion in early January, their highest since March 2023. The market capitalization of DeFi-linked crypto tokens has risen to $77 billion, from $72 billion at the start of December, as per CoinGecko.
The DeFi ethos is starkly different from that of the regulated financial system. It seeks to replicate the usual processes of investing, borrowing and trading, but in a decentralized world where peer-to-peer transactions on the blockchain are executed via smart contracts, with no banks or brokers acting as
