Connect with us

Cryptocurrency

DeFi Market Size Plunged by 45% in a Month to Below $48B

Published

on

DeFi - Investors king

After an impressive growth between January and May, the market cap of the decentralized finance or DeFi market dropped down significantly in the last month and a half.

According to data presented by BlockArabia, the DeFi market size stood at below $48bn at the end of last week, a massive 45% plunge compared to May figures.

A Sharp Fall After Record Levels in May

Decentralized finance offers various benefits compared to traditional financial services. Most DeFi apps run on the Ethereum blockchain, and they operate without a central control service over the entire system.

Through DeFi lending, users can lend out cryptocurrency, as a traditional bank does with an official currency and earn interest as a lender. Interest rates are typically more attractive than traditional banks, while the barrier to entry to borrow is significantly lower compared to a traditional system.

In June 2020, the DeFi market size, as measured by the amount of cryptocurrency locked, stood at $1.85bn, revealed the Defipulse data. By the end of the year, this figure jumped to over $16bn. However, after an impressive growth throughout the last year, the DeFi market exploded in 2021, reaching $46bn value in February. Over the next two months, the amount of cryptocurrency locked in the DeFi market surged to $64bn, a staggering 300% increase since the beginning of the year.

In May, the DeFi market hit an all-time high, with the total amount of cryptocurrency locked surging to $87bn on May 12.

However, July brought a sharp fall, with DeFi market size plunging by nearly $40bn in a month and a half. This could have been caused by significant changes in the price of almost 100 different cryptocurrencies, which may have led to investors pulling out. Another factor was the growing transaction fees of Ethereum, the main cryptocurrency of use within DeFi.

Uniswap and Wrapped Bitcoin Increased Their Market Cap in 2021, Chainlink Down by 10% YTD

As the world’s leading DeFi token, the market cap of Uniswap increased significantly this year. After peaking at $22.1bn in May, Uniswap`s market cap dropped to around $9bn last week, still a massive 310% increase since the beginning of the year.

As the second-largest DeFi token, Chainlink witnessed a different trend, with its market cap falling by 10% YTD to $7.3bn.

The market capitalization of Wrapped Bitcoin, as the third-largest DeFi token globally, grew by 50% in this period, rising from $4bn in January to $6bn last week.

Although it was never intended to have any financial value, the price of the YFI DeFi token skyrocketed to over $38,500 in January, only six months after it was listed. The CoinMarketCap data show this figure soared to more than $77,000 in May, with its market cap reaching $3.2bn last month. YFI has a limited supply of only 36,000 coins, which is why its price quickly reached that of Bitcoin.

However, after the crypto price crash in May, the market cap of the YFI token plunged to just over $1bn last week, a modest 10% increase since the beginning of the year.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Cryptocurrency

Nigeria Leads Africa in Crypto Adoption as Investors Anticipate Market Rebound

Nigeria overtakes Kenya to claim the first position as the leading country with crypto adoption rate in Africa

Published

on

Dollar Cryptocurrency - Investors King

Nigeria overtakes Kenya to claim the first position as the leading country with crypto adoption rate in Africa. 

Investors King learnt that Nigeria leads other African countries in cryptocurrency adoption so far in 2021. Nigeria which is also Africa’s largest economy ranked 11th in the world position. 

Other African countries on the world list include Morocco which came 2nd in Africa and 14th in the world.

Kenya which led the African continent in 2021 was ranked 3rd in Africa and 19th on the global list. 

The ranking which was conducted by Merchant Machine used five different indexes which include; On-chain cryptocurrency value received at centralized exchanges, On-chain retail value received at centralized exchanges, Peer-to-peer (P2P) exchange trade volume, On-chain cryptocurrency value received from Defi protocols, and On-chain retail value received from Defi protocols. 

The report further stated that despite the ban on cryptocurrency-related transactions by the Central Bank of Nigeria (CBN), about 33.4 million Nigerians still traded or hold crypto assets. 

Millions of Nigerian youth have taken to cryptocurrency in recent years either as a way to attain financial freedom or to hedge against the downward pressure on the naira.

Google trend ranked Nigeria as the country with the highest number of bitcoin searches in the world. 

The challenging economy and the high rate of unemployment which the National Bureau of Statistics (NBS) has put at 33.3 percent have made many Nigerians take to cryptocurrency as an alternative way of revenue not minding the volatility risk. 

Besides, some Nigerians have found employment opportunities in the cryptocurrency industry either as cryptocurrency content writers, blockchain developers, cryptocurrency influencers or NFT creators.   

Meanwhile, many cryptocurrency investors believed that bitcoin and a host of other digital assets are trading at discounts.

Although bitcoin is trading below 20,000 dollars at the time of this report, many cryptocurrency investors, however, believed that the market will soon rebound. 

Continue Reading

Blockchain

Blockchain: Lekki Free Trade Zone Partners Gluwa to Create Virtual Free Zone

Lekki Free Free Zone Development Company (LFZ) is collaborating with a California-based blockchain company, Gluwa to create a virtual free zone within the Lekki corridor. 

Published

on

blockchain - Investors king

Lekki Free Free Zone Development Company (LFZ) is collaborating with a California-based blockchain company, Gluwa to create a virtual free zone within the Lekki corridor. 

Both companies are looking for ways to explore blockchain technology for the use of trade collaboration, growth and sustainability among companies that operate within the Lekki Free Trade Zone.

LFZ head of innovation and special projects, Mr Tomiwa Idowu disclosed that the initiative will be a tripartite project between LFZ, Gluwa and the Nigeria Exporting Zone Processing Zones Authority. 

Tomiwa Idowu said that the partnership, when finalised, will create a dashboard for the tokenization of goods into non-fungible tokens (NFTs) and provide digital asset-backed loans for new and existing enterprises that are looking to fund operations and/or expand their businesses. He stated that the project will be similar to the integration of Opeansea and Compound. 

Non-fungible tokens often abbreviated as NFTs are unique digital assets which can be bought, sold or borrowed. 

Idowu further stated that he is overwhelmed with the partnership and looks forward to the possibilities and prospects it will bring to Lagos State. 

He went further to commend the Lagos State Governor, Babajide Sanwo-Olu as a beacon of progress and hope not only for Lagos State but the nation in general. 

“Our Governor has always been a firm believer in fast-paced development, which involves using technology to leap-frog bureaucracy and going straight to solving immediate problems”. He said.

Gluwa Chief Executive Officer (CEO), Tae Oh disclosed that he anticipates the partnership with the Lekki Free Trade Zone which is the most developed free zone in Nigeria. He noted that its proximity to Dangote Refinery and the Lekki Deep Sea makes the zone ideal for partnership. 

Incorporated in 2014, Gluwa is an open-source platform powered by blockchain technology to connect global capital to emerging market investment opportunities. Gluwa launched its stable coin in 2016 and has acquired more than one million borrowers. 

Continue Reading

Cryptocurrency

Cryptocurrency Exchange Platform Luno, Adds Two Digital Currencies Solana And Cardano To Its Portfolio

Luno adds two new digital currencies Solana (SOL) and Cardano (ADA) to its portfolio

Published

on

Luno Exchange - Investors King

Luno, a digital currency exchange facility that offers clients a technology platform to store and trade cryptocurrencies, has expanded its crypto offerings by adding two new digital currencies Solana (SOL) and Cardano (ADA) to its portfolio.

The company disclosed that following these new additions, users can now trade Cardano (ADA) on the Luno app and website, alongside its existing cryptocurrency offerings.

It further disclosed that Solana (SOL) will be made available on the platform from next month October to enable users trade the digital asset.

Cardano (ADA) is reportedly one of the biggest cryptocurrencies by market cap, which has been described as the third-generation blockchain following Bitcoin and Ethereum which are known as the first and second generation blockchain.

Also, Solana (SOL) has been described as one of the best-performing digital currencies in recent years, known to have one of the fastest blockchain in the world and the fastest growing ecosystem in crypto.

Speaking on the company’s latest addition of the two new digital assets to its platform, General Manager for Africa at Luno Marius Reitz said, “As big advocates of building for the long term, we believe it’s important to give customers access to newer crypto applications that have a promising future.

“Now, not only do customers have access to ADA and SOL, but they also have the peace of mind that comes with the rigorous security that customers rely on from Luno.

“In a world that can look complex, we want to break down the complications around cryptocurrencies to make it easy for people to buy, send, store, and learn about.

“Customers don’t need to make one large investment to get started but can build and grow their investment over time through smaller amounts – similar to how they make contributions to their pension for example.”

Reitz concluded by saying, while the two added digital assets Cardano and Solana meet Luno standards for safety, however, being listed on the platform is not an endorsement of its future potential as an investment, noting the fact that investors are always advised to conduct their research.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending