According to a report on this summer’s crypto market from Singaporean crypto metrics site CoinGecko, “Q3 2020 was the summer of Decentralized Finance (DeFi).” Well, yeah.
But the numbers are eye-catching. CoinGecko found that capital inflow into the crypto market increased by $9.15 billion in Q3, attributing the spike to DeFi protocols.
The report ultimately confirms that decentralized finance stole the show after June’s introduction of “yield farming,” a new way of earning tokens on DeFi protocols—generally decentralized derivatives platforms, decentralized exchanges, and non-custodial lending protocols.
The Rise of the DEX
For starters, inflows of Ethereum-based US dollar stablecoins USDT, USDC, DAI, and wBTC (an Ethereum-based version of Bitcoin) soared. Pegs to the dollar are useful when wading through DeFi, a highly volatile space. USDT’s volume rose by 61%, USDC by 157%, DAI by 598%, and wBTC by 1,766%. Read More