Another major achievement goes to the Decentralized Finance (DeFi) Industry as the total value locked in DeFi has skyrocketed within no time. The DeFi industry hits the $3 billion figure during the past two weeks.
$1B locked up in DeFi ecosystem in just two weeks
The Decentralized finance (DeFi) ecosystem is growing faster as we are seeing more and more achievements made in this sector. The latest one is that the total locked value in the DeFi ecosystem has surged high increasing from $2 billion to $3 billion. $1 billion has been added into the decentralized finance ecosystem just within the time period of the last two weeks.
Firstly, when the DeFi industry crossed the $1 billion figure, it spent more than two years to reach there, according to the DeFi Pulse. But eventually, it decreased down to $600 million afterward. Two weeks before, the total value locked in the DeFi ecosystem broke above the $2 billion figure on July 7, 2020. Now only two weeks have elapsed and the total value locked in the ecosystem has reached $3 billion. We can imagine the rising popularity of the DeFi sector from this fact.
Compound’s COMP accelerated the DeFi growth
Compound’s governance token COMP is considered to be the driving factor behind this rapid growth of the decentralized finance sector. Compound firstly accelerated this rapid growth of DeFi when it began the distribution of its COMP token on the 15th of June. This governance token broke the records of popularity as it became the largest DeFi token after just a single day of trade. This was the time when the growth of decentralized finance caught a pace.
After noticing the popularity of the Compound’s COMP token, people started taking interest in the DeFi industry.
However, in spite of its rising popularity, there are some experts who believe that the decentralized finance sector involves some risks which are inevitable. The senior associate at Blockchain Capital Aleks Larsen said in a statement:
“One can imagine a situation where an outside protocol creates incentives that — without any action of its own — can drive dangerous behavior in another protocol and ultimately result in cascading liquidations and user losses.”
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
