This year decentralized finance (DeFi) has proven to be a transformative sector for the cryptocurrency ecosystem and it is also making waves in among global financial markets as institutional investors become entranced with the potential to earn high yields on stablecoins, altcoins and Bitcoin.
While the price action from Dogecoin (DOGE) has dominated the headlines in recent weeks, Delphi Digital has been chronicling the growth of the DeFi ecosystem on the Ethereum (ETH) network which has steadily been gaining strength over the past month.
Venus (XVS), PancakeSwap (CAKE) and PancakeBunny (BUNNY) are the three top DeFi protocols on the BSC and the total value locked on the network totals $49.1 billion.
Stablecoins form the foundation
According to Delphi Digital, DeFi native stablecoins have played a major role in the growth of the ecosystem and now account for nearly $10 billion of the total market cap.
Dai’s (DAI) circulating supply recently surpassed the $4 billion mark to establish itself as the largest DeFi stablecoin, while UST is a rapidly rising challenger fr the Terra ecosystem.
To highlight the significance of the growth in the cryptocurrency ecosystem, Delphi Digital points to the global M2 money supply, the broadest definition of the money supply.
As signs of increased cryptocurrency adoption arise on a near-daily basis, like the May 6 revelation that Goldman Sachs had launched a crypto trading desk, it’s likely that the amount of funds locked in DeFi will continue to rise alongside crypto’s share of the global money supply.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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