The recent successes that have been experienced in the cryptocurrency space are becoming prevalent and overwhelming. Innovations, new supports system, and new protocols are gradually becoming the new order of the day in the Blockchain space and now the DeFi ecosystem.
A keen look at the overall gross market capitalization of defi tokens places it at about $34 billion, a growth of about 90% compared to the $18 billion it closed 2020 with. Another critical look at the DeFi Ethereum ecosystem observes that trading volumes are now pegged at $13billion as at the time of writing.
DeFi tokens are gaining strength
The tokens are starting to gain strength amid new tokens surpassing the $1 billion market cap. The overall monthly performance of tokens like Y.FI, MKR, and DAI maintain the $1 billion market cap, amidst a push by Sushi to join. The likeness of the tokens to public traded companies in a bid to generate revenue differentiates them from cryptocurrencies who grow expediently by the influx of activities in their system.
An observant look at a token like Uniswap will explain that the $3 million it had generated in fees will majorly go to its token holders. At the same time, the liquidity providers will settle for some of the revenue. A good look at the performance of the Synthetix token sees that with a Market Cap of about $1.75 billion as at the time of writing and an overall monthly performance market cap of $2.3 billion, the token with a 24-hour trading volume of about $271.2 million is set to follow an upward trajectory performance this year when compared to last year. Another fact attributed to the synthetic token’s growth is its new derivative market, which allows traders to buy baskets of the token, different from the normal buying of each alone.
The growth by DeFi tokens could tell on Cryptos
The growth of the individual tokens leads the DeFi ecosystem to an unprecedented astronomical level of success, as analysts predict that if the bullish trend continues with the tokens, they can begin to affect cryptocurrencies like Bitcoin and Ethereum positively. Curve DAO attempts to build complexity most transparently only implies that the network aims for success amidst building a powerful product that will grow not only the DeFi space but also the Ethereum chain.
A look at the Curve DAO token, which had seen a price increment of more than 40% already, currently trades at about $1.4 at the time of writing, amidst a 24hour trading volume of $458.35 million and a market capitalization of $450 million. The growth mechanism of the token is commendable, and the hopes around it are to continue to push ahead. Wrapped Bitcoin (wBTC) continues to do well, too, for the tokenized Bitcoin space.
The token with a market capitalization of $4 billion dominates the space and continues to push further at a price of about $36,000 at the time of writing. The Ethereum backed token, alongside other tokens, has been heaped with many expectations, and at this pace, they look like they would surpass them.