The blockchain industry is gradually getting accepted by people in the modern world today. The primary reason behind the DeFi technology is to help people have total control of their monies and reduce restrictions the traditional banking system poses. Also, privacy is an essential factor promoting the use of DeFi technology and even blockchain as a whole.
Many people lock their funds into the protocol, quickly making it rise within a short period. The protocols hit an iconic $23 billion locked in, which is the sector’s all-time high. The relatively small industry caught several investors’ attention in 2020, already setting the structure for a successful 2021. Some days ago, the crypto community also hit a total market cap of $1 trillion, showing that the industry is fast growing.
DeFi Pulse releases industry details
DeFi Pulse gives accurate statistics concerning the DeFi sector, helping people stay updated with trends. The site explained that the industry recently attained $23 billion, the total value of assets kept in protocols under the sector.
The sectors have some notable protocols which carry most of the weight of the all-time high. Some of the protocols are Uniswap, Maker, and Compound, being part of the first ten most extensive protocols in the sector.
The crypto industry also had a recent bull run, which helped cryptocurrency prices reach all-time highs or break their previous records. The rallies pushed Bitcoin to $40,000, while Ethereum moves slightly above $1200. Unfortunately, the bull run might have lost its steam because Bitcoin dropped significantly in value on Sunday before working its way up to $38,000.
The crypto’s volatility makes investors ready to face any uncertainty that comes with crypto. Bearish institutional investors caused the price corrections, and the digital asset may meet another resistance point, which could determine its next value. Previously, the bullish investors dominated the cryptocurrency sector leading to the asset’s good performance. Now, the investment is destabilizing and failing to stand at a point.
The future of DeFi in 2021
Last year, people were exposed to modern technology. Before 2020, most people did not know the DeFi industry, and some of those who did thought it was a bubble. The value locked in DeFi last year compared to this shows that the industry is increasing.
Funds locked rose from $1 billion from last year to early this year’s $23 billion. It’s important to note that Ethereum plays a significant role in the crypto industry because most crypto-based platforms use the Ethereum network, meaning that ETH prices influence digital asset value in the sector.
People attributed the sector’s success to the need for restructuring in the financial industry. Different regulations and restrictions stop people from using their monies the way they want. Sending money cross-borders and other regions become a hassle when authorities create laws that limit money sent abroad and other things. FinCEN, a regulatory body in the US, proposed some regulations concerning crypto wallets some time ago to limit anonymous transactions that the community spoke against.