The popularity of decentralized finance (DeFi) is growing rapidly and the amount of money invested in this growing sector continues to reach new heights. Currently, DeFi’s total market capitalization has breached another important threshold.
CoinGecko Ranking, showing the top 100 DeFi coins in terms of market capitalization, it surpassed the $ 8 billion mark today and has remained roughly the same since then.
It has been acknowledged that there are various indicators for calculating DeFi’s market capitalization. The DeFi Market Cap website has set the total capitalization of the top 100 projects at $ 8.3 billion (at the time of writing this article), however Chainlink – the number 1 coin in the ranking is not included in the calculations.
While there is no consensus between different sources on the actual total market capitalization of DeFi, there is no discussion, the industry has grown rapidly in the past few months.
At the beginning of June, the DeFi market cap was over $ 2 billion and since then that amount has already doubled.
Massive increases in the decentralized finance sector
The huge increase in DeFi is also noticeable in other data, such as the amount blocked in smart contracts. The amount of money stuck in DeFi smart contracts last weekend reached $ 4 billion, just days after crossing the $ 3 billion mark. Earlier this week, data analytics firm Messari reported that more than $ 1 billion in ETH has been blocked in DeFi Protocol Maker.
Given the impact of blocking tokens on projects, thus reducing ETH availability, the massive amount of money currently flooding DeFi is no doubt driving the rising prices of Ethereum.
With all this in mind, there is a concern that the current situation is a DeFi bubble that must burst at some point.
“Apparently we are in the early stages of creating the DeFi bubble. But if DeFi has any chance of being the new financial future, valuations are still very low. Compare the innovations that have emerged now with assets such as XRP, LTC, BCH. “
Will Price, data analyst at Flipside Crypto said.