DeFi Sector Trends as ETH Skyrockets| ATHs To Come!
With the OCC recently granting a second conditional bank charter to Protego, shortly after the approval of Anchorage’s filing last month, DeFi is percolating with an expectant growth and dominating headlines.
DeFi tokens are growing rapidly and now comfortably lodged in the upper echelons of high-value tokens. DeFi has outpaced Bitcoin earlier this year by a large margin and these surges were largely attributed to the monumental performance of the sectors leading tokens.
However, Elon Musk’s recent endorsement of Bitcoin pushed it ahead of Ethereum in recent growth but the reigning #2 has pushed back on the heels of the recent launch of CME ETH futures. DeFi’s ecosystem is pointing towards leading protocol tokens as a value draw mechanism for further growth as the total value locked, according to DeFi Pulse, is sitting at $38.68B with this looking to trend to over $50 billion by late February.
As ETH continues to grow on a steady tear at a robust $1,819, the stand-out gainers are of the blue-chip variety like SNX and AAVE, which have been rallying to mirror ETHs growth. Aave outperformed the vast majority of the sector relatively unaffected by Bitcoin’s downturn, rallying from approximately $2 billion locked (USD) on January 1 to nearly reaching $5.7 billion in February. AAVE’s bullish outlook can be attested to its strong protocol fundamentals and sponsorship and grants which foster enhanced growth potential in other Dapp projects.
ProBit Exchange offers access to leading DeFi tokens like AAVE and SNX among over 50+ more innovative projects. Centralizing your trading at ProBit today avoids pesky, high gas fees, and our convenient DeFi trading tab, offering access and visibility across all DeFi tokens listed. DeFi tokens continue to be added daily with many more coming down the pipe!
Looking to get involved?
Determining the components and weight of a DeFi portfolio is up to the particular investor and should be refined by their own due diligence and risk appetite. Investing only in closely related leading projects can result in collateral damage when one project suffers, like what was seen with YAM’s collapse or the SushiSwap controversy.
ProBit lets you gain exposure to a vast array of leading DeFi tokens from the major DeFi niches including Lending, Payments, Assets, Dexes, and Derivatives.
Lending
Decentralized lending apps enable businesses to receive loans without pesky intermediaries. DeFi lending protocols enable anybody to earn interest on certain stablecoins and cryptocurrencies.
Maker (MKR) is a decentralized lending protocol that created DAI. The Maker smart contract enables lending via DAI stablecoins with MKR supply maintained by collateralized debt positions affixing DAI to a value of 1 USD.
Payments
Matic Network (MATIC) remediates concerns regarding block confirmation speeds and high gas fees through its decentralized platform developed via an adapted protocol of the Plasma framework; eliciting extremely fast speeds and low-cost transactions with finality on the main chain.
The system ensures liveliness using PoS checkpoints which are forwarded to the Ethereum mainchain. This enables a single Matic sidechain to theoretically achieve 216 transactions per block and millions of transactions on myriad chains in the future.
Assets
RenVM (REN) provides interoperational capabilities across the De-Fi ecosystem primarily through RenVM networks which provide cross chain liquidity for De-Fi applications. RenVM is an open protocol that provides access to inter-blockchain liquidity for all Dapps.
DEX
SushiSwap (SUSHI) is a decentralized exchange that provides convenient ERC20 token swap tools. Simarilily, Uniswap (UNISWAP) is an exchange protocol that allows users to trustlessly swap ERC20 tokens. Rather using the traditional order book model, Uniswap congregates tokens into smart contracts and users trade against these liquidity pools. Anyone can swap tokens, add tokens to a pool to earn fees, or list a token on Uniswap.
Derivatives
The Synthetix Network (SNX) helps bypass institutional investing hurdles through its user creation capabilities in a wide variety of synthetic asset classes allocating SNX as collateral. Users can borrow and trade various assets with numerous cryptocurrencies on a DeFi derivatives platform.
DeFi is Promising
It may appear that just as a DeFi project reaches full stride they are brought to a disappointing halt with hacks, forks, or attacks such as the recent $11 million Yearn Finance hack involving flash loans. This nascent space is going to be stress-tested in the coming months and years and the most resilient and practical projects will remain afloat. The result of this evolutionary process will be an exponentially more reliable, effective DeFi ecosystem.
The potential for growth in the current hoard of DeFi tokens is at ATHs with news of OCC charter applications in the US and Biden’s choice of pro-crypto Gary Gensler for the SEC chairman position, injecting optimism into the ecosystem.
ProBit Exchange fully embraces the rising DeFi industry and hopes to become THE premier destination for DeFi tokens. We will continue supporting the top DeFi projects and have already listed many of the promising DeFi tokens for traders, including YFI, REN, RUNE, MTA, LEND, BAND, LRC, and BNT.
Should regulatory bodies abolish obsolete laws in favor of policy and legislation that nurtures the DeFi and crypto ecosystem as a whole, these markets will see consolidation and a bullish future — an outcome we are betting on!
