Defi market is growing with an astonishing speed. Level01 becomes one of the main engines of DeFi
Decentralization is emerging as a fundamental pillar to social and economic issues given the rise of blockchain and cryptocurrencies. It is not surprising that the crypto market stats indicate over $300 billion is currently staked on the growth of decentralization, Bitcoin leads this pack with a market cap of $208 billion as of press date. Ten years ago, Satoshi’s idea was to solve the shortcomings in monetary ecosystems following the 2008 subprime mortgage crisis in the U.S. It was in this line that the unknown Bitcoin founder decided to build a monetary ecosystem that is not run by the Fed but an underlying algorithm consensus. The idea has since survived the times when it comes to payment networks although a few issues like scalability and security are still ongoing. That said, Bitcoin’s decentralization aspect is now finding its way into other industries as well, especially the financial services sector. Recent months have seen crypto niche innovators on board financial products such as lending and saving on the Ethereum ecosystem. This has given rise to what is today known as Decentralized Finance (DeFi), a market that has grown more than threefold in just two months to hit $4.06 billion in total value locked (TVL). Surprisingly, most of this growth happened at the peak of the COVID-19 pandemic as other sectors struggled to survive let alone making some revenue. At the onset of the pandemic, the DeFi market was barely $1 billion and was yet to gather much hype from stakeholders in the crypto scene. The growth trend, however, changed at the beginning of May when Compound announced the launch of its governance token. In fact, it did not take long before Compound overtook Maker as the leading DeFi at the time, a short lived glory since the latter already regained its top position with over $1.23 billion in TVL according to DeFi Pulse metrics.