The Defi (decentralized finance) market capitalization reached almost US$ 12 billion (or R$ 64 billion acording to the quoted market price at the closing date of this edition), reflecting the growing interest of investors in this type of cryptoasset. Another important figure to measure the performance of this market, the value held in contracts has been growing at a strong pace.
On August 25, the total resources committed to DeFi contracts exceeded US$ 6.73 billion, ( close to R$ 36 billion) according to data from DeFi Pulse. The amount represents an increase of more than US$ 2 billion in comparison with US$ 4.71 billion on August 10. And it may indicate an acceleration in DeFi growth, once the US$ 1 billion barrier was broken in February this year.
DeFi market capitalization value divides opinions
On the other hand, the value of these contracts divides opinions. According to CoinTelegraph, Damir Bandalo, founder of Encode Club, a group of university students, academics and developers working in the blockchain field, sees an overvaluation. For Bandalo, the number is almost US$3 billion above the real figure. The article, on the other hand, reminds us that it can be difficult to specify the numbers. That’s because US$1 invested, for example, in Ether, can be used to create a cryptocurrency of another type, which can be used in a different protocol. These duplications end up complicating the accounts, although DeFi Pulse has stated that those exclude duplicate assets.
DeFi uses technologies such as blockchain, smart contracts and stablecoins to decentralize financial products. This market has attracted many investors because there are chances of getting bigger gains. An example of success in this field is the Compound governance token. In addition to allowing the investor to lend, paid with interest, he gives the holder the power to vote on the company’s decisions.
LiveCoins remarks however, that the chance of a bubble in the industry is not small. Because it’s something very new, it’s hard to predict its behavior. And analysts alert that there may be a strong correction as it happened with bitcoin in 2018. At the time, the leading cryptocurrency devalued by 80%, returning to first half of 2017 values, according to El País.