Despite criticism, the DeFi space is continuously growing as total DeFi value has exceeded $11 billion figure, DeFi Pulse’s data shows.
DeFi Pulse index unveils that the total locked value across different DeFi protocols has crossed $11 billion. And most of the value locked on two protocols: $1.99 billion is locked in the Uniswap while $1.96 billion is locked in the Maker protocol.
The Path towards $12 Billion
DeFi hype in 2020 has engulfed up to $11 billion investment from investors. The increasing interest in DeFi and outstanding growth in the sector shows that the $12 billion figure is now closure.
Neo founder Da Hongfei says that the DeFi hype is not going anywhere. Rather, it has just begun. All kinds of products are experimenting with decentralized finance.
“Lending and borrowing, decentralized exchanges, insurance and all kinds of derivatives are on the rise in DeFi. The initial stage DeFi infrastructure has a solid good start, and now it is time to see more and more applications to be built and innovated on DeFi,” Hongfei stated in a live stream on China’s Hub.
According to him, DeFi has brought many possibilities and opportunities with it. In the Future, banks will also go towards decentralized finance. As an example, he mentioned China:
“Chinese people have done this more or less, probably dealing with banks, dealing with Alipay and WeChat, at least doing this kind of financial behavior without going to the bank.”
Criticism over DeFi Craze
Some people in crypto space are not happy with DeFi craze. Diginex CEO Richard Byworth stated:
“I do believe that DeFi is the future potentially down the road…It’s like trying to fly to the moon in a cardboard box — I mean, you’re going to get yourself into trouble along the way, and, you know, things are going to break and burn up, as we’ve already started to see.”
“We’ve got MicroStrategy coming in, we’ve got Paul Tudor Jones coming in, we’ve got some really serious hitters starting to pay attention to this industry and I just hope that DeFi doesn’t become another ICO craze that people go, ‘you know what, everyone’s crazy in crypto,’ and stay away from it for another few years.”