Defi Nears $8 Billion in Market Cap – Trustnodes

Defi Nears $8 Billion in Market Cap


SNX options dapp on Ethereum, July 2020

Ethereum based decentralized finance is now worth $8 billion according to data from Coingeko, aa crypto markets stats page.

Defi is now worth about 20% of ethereum’s market cap which itself has reached $40 billion, with defi tokens handling some $1.4 billion in trading volumes for the past 24 hours.

This $8 billion however is just 2.3% of the global crypto market cap and less than 5% of bitcoin’s $206 billion market cap.

Top defi tokens, July 2020
Top defi tokens, July 2020

Chainlink is more a backend than defi, making it a $5 billion market cap without it.

That’s close to a doubling of the $3 billion it reached on the 5th of July, indicating significant growth with snx for example up 11% in the past 24 hours.

Synthies have options now as pictured in the featured image, including an option for BTC to reach $100,000 by January 1st 2022.

Now that’s a damn good option, but they don’t have a $10,000 one for eth, although presumably anyone can do here what they want because they have a Link option for $1,000 (lmao).

They’re gone get competition soon with UMA coming up on these charts, that basically being Synthetix but presumably they think they can do it better. They say:

“UMA is designed to power the financial innovations made possible by permissionless, public blockchains, like Ethereum.

Using concepts borrowed from fiat financial derivatives, UMA defines an open-source protocol that allows any two counterparties to design and create their own financial contracts.

But unlike traditional derivatives, UMA contracts are secured with economic incentives alone, making them self-enforcing and universally accessible.”

So you can create a market on whether prices for tomatoes will go up or down with this settled automatically based on price feeds and collateralization.

We know what’s gone happen soon right. We’ll have a token to combine these synth and uma markets, and then another one to combine all three of them.

As everything here is open source, with that open source and decentralized part strictly enforced by SEC as otherwise they hand out fines, you can presumably do all sorts of things to play with all these different markets in real time, well block time.

For now however the markets haven’t gotten going yet. There are no stocks, although there are tokenized stock indexes. There are no… South African stocks, exotic stuff, like Norway’s trust fund or Saudi’s Aramco.

But there will be, there will be everything, including for example whether there is gold under what was called West Atlantis, that being the arc of Africa with them very remote but nearby islands there.

You can also pretty much do ETFs here, with the Defi index kind of being one and Balancer is a sort of one, and Melon is a more traditional setup with plenty of experimentation as many are desperate to just give someone their money to bot it.

We haven’t even gotten to the Citizen Assemblies bit where all these token holders debate in their ‘parliaments’ such fine things like what the fees should be or indeed whether to remove a market.

All of it not even began yet but it does look like it is beginning to begin with a digital world market place clearly envisionable here and clearly achievable as these prototypes or still very experimental stage dapps are now showing.