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DeFi players big and small: 3 DeFi loan protocols record more than $ 20 billion in deposits, and could generate more than $ 500 million in interest in 2021.
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500 million annual interest
According to Dune Analytics, the 3 main DeFi loan protocols – Maker (MKR), Compound (COMP), and AAVE – have raised around $ 20 billion.
A research report by Messari on the evaluation of these platforms indicates that they are on the verge of generating more than half a billion in interest per year.
All 3 protocols have recorded record loan deposit levels, while yield farmers seek investments with significantly higher returns compared to those offered by traditional banks.
According to the researcher within Messari, Mira Christanto, protocols extract value by attracting capital and using it. Their TVL would reflect this.
Data from Dune Analytics indicates that Maker recorded a record level of $ 6.38 billion in blocked deposits, compared to $ 8.7 billion for Compound, and $ 6.5 billion for AAVE.
The institutional boom
On February 10, 2021, the TVL in DeFi reached 40 billion dollars. The sector has experienced a regain of form since the start of 2021.
Analysts predict a DeFi boom in the coming months. The development of the latter is however hampered by the problems of scalability d’Ethereum (ETH) – the Ethereum killers as Avalanche (AVAX) do not do better.
The development of DeFi today seems to be conditioned by the entry of institutions into the sector.
Bitwise recently launched its DeFi crypto index fund which will initially consist of 9 major DeFi tokens.
The rise of DeFi in 2021 should allow DEXs to catch up with CEXs.
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Uniswap recently recorded $ 50 billion in cumulative trading volume.
DeFi impresses with its growth, but for the moment it is a “small player” alongside traditional finance. DeFi loan protocols are more like microfinance institutions than large decentralized banks, despite their international scope. The billions impress retail investors, but they are a drop in the bucket for institutional investors. A massive entry of the latter into the sector will cause a DeFi tsunami to surf for seasoned investors.
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Litecoin, welcome in the Silver Age
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