The decentralized financial system attracts bigger investors with its easy accessibility and assurance of attractive interest on money locked for several periods. Some days ago, experts reported that DEX tokens had an unexpected surge that took the industry by the storm, especially when comparing it with centralized exchange’s tokens performance that failed to bring notable gains.
Sources blamed the past GameStop drama for the price rise due to the shifted interests from centralized platforms to its counterpart. Presently, the Ethereum network faces some of the unexpected gas fee hikes that threaten retail investors, who were the only ones affected by the price growth. The analysis showed that DeFi projects contributed significantly to the rise in the network’s transaction fees due to the increased traffic.
Recent growth comes from new DeFi projects
The Aave and Link projects are popularly known in the industry and mostly attract investors more than any other project in the sector. Interestingly, some sources claim that new projects were responsible for the new demands that the industry sees with its record-breaking market capitalization.
The projects have consistently been gaining attention from the DeFi crowd for the past week, which shows the protocol’s gradual rise against the past months. The term Total Value locked (TVL) is well-known in the sector, and it helps analytics determine the size of assets staked inside DeFi protocols.
Also read:An expert explained that term and described TVL as the value of tokens in various protocols inside the dapp. DeFi’s rise in the blockchain industry has been gradual since its creation three years ago and the continuous interests of various investors to lock in money into various projects. Things did not blossom like that in the beginning. At first, many investors were scared of putting money into the protocols, leading to 2018’s $300 million value locked in data.
The amount was a clear rise from the previous position, but it still failed to get industry players’ attention. Fortunately, things got better in 2019, with the TVL exiting the year with over $900 million in TVL. Last year stands as the industry’s greatest change in publicity and exposure because it ended up with $15 billion TVL when 2020 came to a close. Barely two months into 2021, the industry is already bringing big players who took the present TVL to $37 billion.
DeFi industry’s sudden growth
When the industry came into existence in 2017, most people thought it was a bubble that would end up not actualizing the goal behind its creation. In 2021, investors are starting to open up to digital assets, and Bitcoin’s boom gave sectors like the DeFi industry some publicity to grow and expand despite the public’s view of it.
Justin Banon, the Chief executive officer of Boston protocol, opined that decentralized systems have helped the industry grow popular globally. The CEO spoke extensively on giving everyone access while not stop the industry’s growth with numerous interferences frequently seen in centralized financial systems, which made people prefer the counterpart.
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