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DeFi Market Cap Surges Past $100 Billion

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  • DeFi sector’s total market capitalization has achieved the level of $128 billion
  • Coinbase sees decentralized finance as its potential competitor
  • DeFi’s growth on the BSC is faster than on the Ethereum blockchain
  • Instead of making wild bets, DeFi is offering an opportunity to earn higher yields without risk

DeFi platform has been observed performing tremendously over the past few months. Moreover, the sector can be considered the corner of the crypto industry, representing various lending, trading, and betting activities. Hence, most of such activities are carried out on blockchain networks using tokens as proceeds and collateral. 

According to CoinGecko, all the tokens’ combined market valuation has surged to more than $100 billion. 

DeFi as the potential competitor of Coinbase

This month, Coinbase, a major crypto assets exchange based in the United States, went public. Since the firm is listed on the platform of Nasdaq, its market valuation is observed soaring to reach near $100 billion. 

However, when the exchange filed for a public listing, it labeled DeFi as its potential competitor. Notably, we don’t usually consider market valuation in terms of the decentralized finance market. What is observed is the value of the assets deposited in the sector to earn yield. Simultaneously, such valuations are termed as Total Value Locked (TVL).

Notably, such valuation is also giving a similar read, as there is now more than $100 billion worth of digital assets locked up in the sector.

DeFi’s performance on Ethereum and BSC

DeFi has originated on the Ethereum blockchain, where the best-known entrepreneurs have committed to operating. However, more than Ethereum, the Binance Smart Chain (BSC) growth is observed to be much faster.

DeFiPulse is a platform that mostly cites the TVL on the Ethereum blockchain. According to data from DeFiPulse, currently, the Total Value Locked on Ethereum is approximately $65 billion. Furthermore, we have observed that the value has quadrupled since the beginning of this year. 

On the other side, Defistation, a platform citing the TVL on the BSC, has revealed that the chain has shown tremendous performance. According to the data from Defistation, BSC is currently having more than $42 billion worth of locked-up assets. Notably, at the beginning of this year, there was only $1 billion in TVL on BSC.

Is investing in ICOs worth instead of DeFi?

Following the current scenario and comparing it with initial coin offerings (ICOs), it seems like the DeFi sector represents a more credible narrative. Hence, the industry is having a more substantive business as it shows products with genuine returns. Investing in ICOs is not as worthwhile as DeFi, because the sector offers impressive yields instead of making wild bets and hoping.

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