Top 5 DeFi projects by market capitalization
- DeFi’s total market cap has exceeded $ 90 billion.
- Uniswap, Chainlink, Wrapped, Terra and Aave make up the five largest DeFi projects in terms of market capitalization.
- The five largest DeFi projects total $ 46.68 billion of DeFi’s existing market cap.
- DeFi is an alternative to the traditional financial model, offering peer-to-peer financing made possible through applications based on blockchain networks.
Decentralized Finance (DeFi) has made a confident statement since its inception, showing impressive growth and adaptability.
The financial application ecosystem created with blockchain technology offers users an open, non-custodial, decentralized and transparent alternative to traditional financial institutions.
While it’s still a relatively new phenomenon, DeFi’s market cap has grown to over $ 90 billion. According to market capitalization, the five most important DeFi projects are listed here.
Uniswap is a decentralized trading protocol designed to guarantee liquidity to millions of users and a wide variety of applications.
Launched in 2018, Uniswap has a sizable fan base that has resulted in a market cap of $ 15.1 billion. This makes Uniswap the world’s leading DeFi project.
In 2020 Uniswap launched the ERC-20 based UNI token. It currently trades at $ 29.12, making it the eighth largest cryptocurrency in the world, just above THETA and below.
As evidence of Uniswap’s impressive growth, it hit its all-time high of $ 36.41 a week ago.
Chainlink holds the enviable position as the second largest DeFi project with a market cap of $ 11.5 billion and trading of $ 27.82.
Chainlink was founded in 2017 by Sergey Nazarov and Steve Ellis and prides itself on its decentralized oracle network that connects intelligent contracts and data from reality.
Chainlink, like Uniswap, is an ERC-20 token, but has an additional ERC-223 transmission and calling function that allows tokens to be received and processed in a single transaction.
Chainlink has a maximum supply of 1 billion LINK, but only 416,009,556 LINK are in circulation.
Wrapped Bitcoin (WBTC) is a tokenized version of Bitcoin that runs on the Ethereum blockchain and, like Chainlink and Uniswap, is also an ERC-20 token.
Wrapped Bitcoin was founded by BitGo, Kyber Network and Ren and is backed by Bitcoin in a 1: 1 ratio as the price is tied to Bitcoin. Currently, WBTC has a market capitalization of $ 8 billion.
On the downside
- The DeFi project Yearn.Finance has broken the connection to the Cover Protocol
- In November 2020, both projects agreed to work together
- After the divorce, the price of the coverage record dropped a whopping 40%.
The growth of Terra (LUNA) in the crypto ecosystem is mainly due to the interest DeFi has generated over time.
Terra is currently trading at $ 19.14 and has a market cap of $ 7.5 billion. This makes Terra the fourth largest DeFi and the 18th largest cryptocurrency in the world.
Terra uses stable fiat-based coins to create stable prices in the global payments system and was launched in April 2019.
Aave is currently trading at $ 352.57 and has a market cap of $ 4.3 billion. This makes Aave the fifth largest DeFi project. Aave was founded by Stani Kulechov and offers users the ability to borrow and borrow cryptocurrencies easily on the platform. There are currently 12,462,563 AAVE coins in circulation, with a maximum of 16,000,000 AAVE coins.
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