Looking back on July when DeFi continued to write legends: DEX broke out in an all-round way, mortgage lending two strong contenders for hegemony
Text | Edited by Jiang Haibo | Produced by Bi Tongtong | PANews
In July, the DeFi market continued its legend.
The total lock-up volume of DeFi projects increased again by 83.5%; the daily trading volume of decentralized exchanges increased by 510%; the circulation market value of the stable currency DAI increased by 192%; the total borrowing in the mortgage lending market increased by 121%; the price of the synthetic asset project SNX Doubled again; the scale of BTC anchor coins increased by 72.8% to 20,348, which is close to one-thousandth of the total supply of Bitcoin.
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The total lock-up reached a new high, an increase of 126%
Total Locked Volume (TVL) is calculated by calculating the total value of ETH and other ERC-20 tokens locked in the smart contract. In June, due to the distribution of Compound’s governance tokens, a wave of liquidity mining was triggered. By the end of June, the total lock-up volume of DeFi projects reached 1.93 billion, an increase of 83.5% in a single month. In July, another miracle was created, with the lock-up volume reaching 4.363 billion US dollars, an increase of 126%. Maker, an established DeFi project, contributed the most to the increase in locked positions this month. Maker's locked positions rose from 443 million to 1.210 billion, an increase of 173%. Compound, which has the second largest lock-up volume, has not seen much growth.
In addition to these projects that have been tested by the market, some new liquidity mining projects have also emerged this month. Some projects have gradually gained a firm foothold, while others are short-lived and quickly disappeared from people's vision.
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Decentralized exchanges have exploded
In June, the trading volume of decentralized exchanges (DEX) only ushered in a small peak in the middle of the month, and then the trading volume declined. In July, DEX finally ushered in a full-scale explosion, and the daily trading volume increased by 510%. The trading volume of Uniswap V2, the leading DEX, accounts for 43.9% of the total DEX. In July, the daily trading volume of Uniswap V2 increased by 116 million US dollars in volume, an increase of 835%.
The liquidity of Uniswap V2 also rose from $41.21 million to $152 million in July.
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The price of AMPL has been cut in half, and the stable currency is not "stable"
The market value of stablecoins is always growing. In July, the circulating market capitalization of major stablecoins rose from US$11.996 billion to US$13.408 billion. Among them, the circulating market value of USDT increased by 930 million US dollars. It is worth noting that the second most stablecoin market capitalization growth is DAI. The original market value of DAI was not high, only $128 million, but it rose to $374 million at the end of July, an increase of 192% in one month. DAI is the most common stablecoin in DeFi projects, because it is originally generated by mortgage of assets on the chain, without the centralization risk of other stablecoins. The surge in DAI’s circulating supply reflects increased on-chain demand for the stablecoin.
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Mortgage lending duopoly
The decentralized lending market continued to grow at a very high rate in July, with total borrowings increasing by 121% during the month. The mortgage lending market on Ethereum is firmly controlled by Compound and Maker, and the combined market share of these two platforms has reached more than 90%. Compound, which only started to rise in June, is the real overlord among them.
synthetic assets
synthetic assets
Before July, the highest price of Synthetix's native token SNX was around $2, but now it has risen to $4. An increase in the price of SNX can drive an increase in the size of synthetic assets. In addition to the original transaction between synthetic assets, Synthetix now also provides lending and option trading services.
With the option trading market inside the system, SNX's risk-free arbitrage is easier to realize. A feasible approach is to buy SNX in the secondary market, mortgage to obtain SNX's high inflation and transaction fee dividends, and then choose options and other appropriate ways to hedge the risk of SNX's decline.
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Cross-chain assets increased by 72.8%
The scale of cross-chain assets reached 20,348 BTC at the end of July, an increase of 72.8% throughout July. WBTC still occupies an absolute dominant position, with a total of 15521 WBTC issued. The circulation of the fledgling renBTC also nearly doubled in July, reaching 2,069. With the rise in the price of SNX and the optimism about the future market, the issuance of sBTC in synthetic assets occupies the third place among cross-chain assets, with a total of 998 issued.
All of the above are cross-chain assets in the Ethereum network. Bitcoin can be mapped to the Ethereum network through anchor issuance, enabling Bitcoin to participate in DeFi as an asset. Because Ethereum has the best DeFi ecology, and Bitcoin is the most important encrypted asset, this is a win-win situation for both Ethereum and Bitcoin.
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Leveraged trading is still in its infancy
The total open interest of the leveraged trading platform is also at a new high, which increased by 28% in July, and the total open interest reached 36.33 million US dollars. Although some projects have not been included, the leveraged trading platform is far from ushering in the golden development period like other DeFi fields.
Summarize
Summarize
This month, decentralized infrastructure began to show some irreplaceable advantages. The increase in trading volume and liquidity of decentralized exchanges, as well as the growth in the market value of the stablecoin DAI, all reflect that transactions and other processes are being transferred to the chain, and the Gas fee in Ethereum has also hit a new high. The number of tokens in the Uniswap liquidity pool can automatically change with the supply, and the price will be automatically balanced. The centralized exchange needs a lot of manpower and material resources to realize. With the increase in volume, Uniswap has already mastered the pricing power of many assets.
Decentralization is taking an increasingly important place.
