Many crypto investors are flocking into DeFi assets, outpacing the two most valuable crypto assets in recent times. Just last month, the trading volume of the entire crypto market dropped by almost a quarter (-23.5%). At the same time, the collective trading volume of the ‘DeFi summer’ tokens recorded a monster growth of +97.9%.
Crypto asset attention has moved more towards lending protocols, decentralized exchanges and multiple other DeFi-based initiatives. By doing so, the attention has moved away from perennial top caps. BTC, ETH, LTC, and BCH are receiving fractions of the trading volume that they were receiving a year ago.
So the big question is whether DeFi is in a current bubble and if so, how long will it last?
1) In the past month, the trading volume of the entire #crypto market dropped by almost an entire quarter (-23.5%). At the same time, the collective trading volume of our ‘DeFi summer’ tokens recorded a monster growth of +97.9%! #Crypto asset attention pic.twitter.com/23lpPai93g
— Santiment (@santimentfeed) July 21, 2020
Quick fact: Defi means “decentralized finance.” By definition, it’s a crypto ecosystem made up of financial apps designed on leading blockchain platforms. These digital assets are designed on Ethereum codes, and usually exhibit characteristics that include having protocols and financial smart contracts.
Recall that Nairametrics recently revealed that DeFi-coins like REN, LEND and KNC had recorded impressive growth on their network activity over the past several weeks.
The average volume of daily addresses using REN in July so far has been 588, up 36% from June, +181% from May, and +332% from April.