Research shows that the DeFi field achieved a return rate of over 250% last year
Decentralized finance has gone from strength to strength in 2019, despite being generally bearish for most cryptoassets. Recent research has found that a small investment in DeFi may have yielded more gains than Bitcoin over the past year.
Year of DeFi
If 2018 was the year of the ICO, 2019 is undoubtedly the year of decentralized finance (DeFi).The market for smart contract-based lending has proliferated as ethereum and its associated digital currencies have failed to gain traction.
Still, the industry is still nascent. According to Binance Research, the number of monthly users is low at around 40,000, 90% of which use decentralized exchanges.
According to data from defipulse.com, the total dollar value locked in DeFi has increased by almost 200% year to date. It is now around $660 million after hitting an all-time high of $710 million on Wednesday.
Ethereum still dominates, with new records constantly being broken.Currently, the amount of ETH locked in DeFi is at an all-time high of 3.1 million, which is roughly 2.85% of the total supply.
Cryptocurrency research firm Messari has been doing some calculations and concluded that,If you invest $400 in the four major DeFi fields at the beginning of 2019, you will get a return of $1400 by the end of the year, which is a return rate of more than 250%.
The study revealed that asset management was the top-performing industry, followed by prediction markets, lending, and finally decentralized exchanges.
The storage rate of DAI becomes higher
MakerDAO holds 56% of the entire market and is already promoting DeFi to the masses. As a result of what the foundation saw at this year's CES technology show in Las Vegas,DAI became people's favorite stablecoin in Ethereum.
Governance holders of the protocol voted to increase the Dai Savings Rate (DSR) from 4% to 6% this week. MakerDAO launched DSR in November, where holders can stake their DAI to earn a “stability fee” paid by borrowers. That’s far more yield than any fiat deposit account at a traditional bank, which is currently driving interest rates into negative territory.
Gregory DiPrisco, Head of Business Development at the MakerDAO Foundation commented,We just haven't seen the kind of returns that dollar-based deposits have produced over the past decade.
Meanwhile, Ethereum slowly retreated to lows around $135 after Bitcoin corrected. Ethereum’s bearish momentum may continue until Bitcoin finally turns bullish again.
Earlier this week, Bitcoinist reported that,When the Ethereum price finally recovers, the DeFi market could easily reach $1 billion.
The original text comes from Bitcoinist, compiled by the Bluemountain Labs team, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
