DeFi is a fast-growing sector in the cryptocurrency and stablecoin sector. It adopts an independent financial system that is not governed by any government authority, and it stores value away from fiat currency.
Unlike the traditional financial system, anyone with an internet-connected device can access DeFi.
Besides, it doesn’t need any regulatory body, and there is no limitation with it. Although it is still small when compared to the current financial sector, DeFi has seen a major surge in 2020. There was just $275 of digital locked in the DeFi sector around the first quarter of 2019.
However, by February 2020, the figure has grown to a $1 Billion mark. DeFi has continued to grow steadily, and by July 2020, its total asset value stands at $4 Billion.
The post-Election surge of DeFi
The dramatic growth of DeFi shows that there is great interest in it all around the world. It has come to stay with its financial model that gives power back to the crypto community. The sector is growing exponentially, and in October 2020, its total worth of locked assets exceeds $12 Billion. This is a new record high, but most analysts think the upcoming election is greatly influencing its rush.
Many Decentralized Finance protocols are developed worldwide, and in the last 24 hours, has added about $1 billion worth of digital assets to it. The growth of DeFi follows Bitcoin reaching a record high in 2020. Bitcoin is trading above $13,000 on the 26th of October 2020. People think that the announcement of PayPal accepting cryptocurrency is somehow driving the price above.
The announcement made by PayPal has certainly resulted in gains for a number of stable coins and cryptocurrencies as well. Some of the biggest gainers include Airswap, Bitcoin, Ethereum, Synthetix, Curve, and Aave.
Ethereum is trading past $415, reaching a six weeks high record after the PayPal announcement as well. However, there are still a few DeFi assets that made no gains. Some of the biggest losers are bZx, SushiSwap, Meta, and Swerve.