- For the first time, the decentralized financial ecosystem reaches $ 7 billion in stranded funds.
- Bitcoin price refreshes support to $ 11,100 after losing traction towards $ 12,000.
The DeFi ecosystem is on a path of wild growth like on steroids. Projects that offer services like secured loans continue to become popular as investors seek alternative investments from traditional assets like Bitcoin and Ethereum.
In less than two months, DeFi grew 271% to $ 7 billion for the first time. According to DeFi Pulse’s data release, if the growth rate remains intact, the ecosystem could soon reach $ 27 billion by the end of 2020.
Despite the meteoric growth, only a handful of projects absorbed the share of the $ 7 billion. For example, Aave has $ 1.51 billion in locked-in funds. It is closely followed by MakerDAO with $ 1.42 billion while Curve Finance comes in third with $ 1.15 billion. Yearn.finance came in fourth at $ 845 million, followed by Synthetix at $ 801 billion while Compound reached $ 797 billion.
Aave became even more attractive to investors after being licensed as an electronic money institution by the UK Financial Conduct Authority. The continued growth of the DeFi ecosystem, however, will depend on the ability of projects to offer long-term solutions in the dynamic world of finance.
As DeFI rallies, Bitcoin and other major cryptocurrencies are stagnant and bleeding. BTC explored levels closer to $ 11,000 after price action towards $ 12,000 lost traction on Monday and Tuesday. At the time of writing this article, Bitcoin is trading at $ 11,366. The bulls are facing short term resistance at $ 11,400 as indicated in the price prediction. The same dull action is seen with Ripple and Ethereum.