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Defi Market Surpasses $1 Billion, But There’s a Catch
Summary: The TVL of all assets of defi protocols went beyond $1 billion, according to Bitcoin.com. A year ago, defi market valued less than $280 million. Lending is the heart of decentralized finance, it accounts for the top 10 dapps like Bzx, Compound, Maker, etc. Centralized lenders are looking at Defi's market share, but not everyone ...
The TVL of all assets of defi protocols went beyond $1 billion, according to Bitcoin.com. A year ago, defi market valued less than $280 million. Lending is the heart of decentralized finance, it accounts for the top 10 dapps like Bzx, Compound, Maker, etc. Centralized lenders are looking at Defi's market share, but not everyone is convinced that the numbers add up.
One bitcoiner wonders what part of the $1 billion is locked up; is it illiquid or fluffed by Consensys or Ethereum founders? Crypto legal commenter, Preston Byrne, states that $1 billion is not locked up in defi, that "At least $300mm of that is in ether that early investors don't want to sell and thereby incur the tax hit, if Dai proponents are to be believed. It's the difference between saying 'Jeff Bezos is worth $100bn" and saying "Jeff Bezos has $100bn in cash." Defi doesn't have $100BN locked in it, it has ether that early holders didn't want to sell."
By Claudia Rivera
Tags: Dai,Decentralized Finance,DeFi,ETH,Ether,Maker,Sai
Link: Defi Market Surpasses $1 Billion, But There’s a Catch [Copy]
