Blockchain, News & Updates

DeFi Declines for the First time since Bull Run

Only two months left for 2020. Last October, many close to reflecting on Bitcoin’s success, ending the month at one of the highest price-points ever.

Because of the latest Bitcoin-mania, the decentralized finance, the once new and bustling industry of non-custodial financial products like exchanges and lending protocols, has been forgotten.

Although this summer, DeFi has been all the rage with the investors pouring billions of dollars into the smart contracts to receive highly profitable rewards. With the same metric, it is clear the DeFi’s growth rate is slowly dropping.

At some point, the rise appeared to be unstoppable; the amount has locked into DeFi contracts, then rising almost a billion each week; the industry has peaked this week at over $12.4B, topping from about $1B in May.

However, the growth has slowed; the amount of cryptocurrency locked in decentralized finance smart contracts by the end of October has been less than when the month started. It is the first time this happened ever since the summer’s DeFi craze began.

Last October 1, there was still $11.28 Billion locked up in DeFi protocols, and on October 31, there was $11B locked up.

It seems fuzzy, however, considering that last August, the market has doubled. On August 1, there has been a $4.04B locked in DeFi smart contracts, and on August 31, $9.37B.

The slowed growth was down to the fact that many the protocols were not as lucrative as it used to be, and the new protocols are not coming out as thick and fast as before.

Leave a Comment

Leave a Reply