Despite DeFi’s meteoric growth, only half a dozen projects represent more than 90% of the capital locked in the sector. The total value of capital locked in decentralized finance (DeFi) protocols has increased 271% in less than two months to surpass $7 billion for the first time, according to DeFi Pulse. If the current rate of growth continues, DeFi will be worth more than $27 billion by the end of 2020.
Aave currently comprises the largest DeFi project with $1.51 billion locked, followed by MakerDAO with $1.42 billion, Curve Finance with ss$1.15 billion, Yearn.finance with $845 million, Synthetic with $801 billion, and Compound representing $797 million.
Aave recently emerged as the top DeFi project after receiving an Electronic Money Institution license from the U.K Financial Conduct Authority, signaling the increasing legitimacy of the sector.
However, while DeFi’s aggressive growth trajectory has been fuelled by the recent rise of lending protocols that have disrupted Maker’s long-standing dominance over the space, just six protocols represent more than 90% of locked capital in the sector according to DeFi Pulse.
While numerous projects have quickly captured the imagination of the crypto community amid the 2020 DeFi bubble, few have been able to establish themselves and long-term leaders within the sector.
The recent dramatic rise and fall of Yam Finance offers a precautionary tale illuminating the potential severity of contract risk — with more than $750,000 worth of crypto being lost alongside the protocol’s collapse. DForce also suffered a multi-million dollar hack in April, however, the stolen funds were returned by the hacker and given back to investors.
Industry leaders have warned of over-exuberant bullishness in the DeFi sector, with Compound founder Robert Leshner recently tweeting:
Earlier this month, Ethereum co-creator Vitalik Buterin also wrote, “you do not have to participate in ‘the latest hot defi thing’ to be in Ethereum. In fact, unless you really understand what’s going on, it’s likely best to sit out or participate only with very small amounts.”
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 84.8% | 28 | $100 448.33 | 5.64% | 4.31% | $1 988 318 456 894 | ||
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2 | ETH | Ethereum predictions | 68.4% | 59 | $3 796.92 | 6.03% | -0.86% | $457 319 539 563 | ||
3 | XRP | XRP predictions | 56.4% | 91 | $2.43 | 20.39% | -0.21% | $138 750 296 858 | ||
4 | USDT | Tether predictions | 96% | 1 | $1.000863 | 0.07% | -0.04% | $138 738 631 458 | ||
5 | SOL | Solana predictions | 76% | 42 | $228.65 | 9.51% | -0.71% | $108 924 754 147 | ||
6 | BNB | Binance Coin predictions | 73.2% | 48 | $705.75 | 6.54% | -3.85% | $101 634 352 877 | ||
7 | DOGE | Dogecoin predictions | 71.6% | 57 | $0.411036 | 8.51% | -0.38% | $60 487 599 460 | ||
8 | USDC | USD Coin predictions | 93.6% | 1 | $0.999949 | 0.01% | 0% | $41 207 194 931 | ||
9 | ADA | Cardano predictions | 63.2% | 84 | $1.078784 | 13.80% | -8.36% | $37 879 059 439 | ||
10 | TRX | TRON predictions | 60.4% | 91 | $0.279620 | 9.52% | -16.90% | $24 118 093 617 | ||
11 | AVAX | Avalanche predictions | 63.6% | 73 | $47.51 | 11.68% | -12.29% | $19 462 157 076 | ||
12 | SHIB | SHIBA INU predictions | 71.6% | 63 | $0.000029 | 13.48% | -2.66% | $17 206 296 520 | ||
13 | TON | Toncoin predictions | 62% | 75 | $6.27 | 10.85% | -9.60% | $15 996 605 953 | ||
14 | LINK | Chainlink predictions | 61.2% | 75 | $23.66 | 12.77% | -5.66% | $14 829 496 329 | ||
15 | DOT | Polkadot predictions | 61.2% | 88 | $8.98 | 13.87% | -17.22% | $13 713 746 063 |
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