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Friday, September 30, 2022

DeFi Market Blossoms As NFTs And Alternate Blockchains Show An Upward Trend

Setting aside the ‘September curse’ the cryptocurrency market recovered to reach a staggering capitalization of $3.32T in the market. the DeFi market remains integral to this growth, with a Total Value Locked in DeFi protocols growing at a healthy 20% to $137B on October 6. This is a strong recovery from the September 28 figures of $113.5B, figures by Dappradar reveals.

The bullish sentiments on nonfungible tokens (NFTs) and Decentralized Finance has been shared by even Bank of America. A report by Bank of America securities on October 4 evaluated the potential of crypto-assets being beyond merely bitcoins. The firm, which is a subsidiary of Bank of America, reported that Bitcoin can execute automatic programs including making payments after a particular event. It also related tokenization to initial periods of the net and mentioned the tokenization and decentralization of various financial aspects as it exists at present.

Defi Growth Picks Up Pace

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The rapid developments in the Decentralized Finance sectors were elaborated on by Johnny Kyu, CEO of KuCoin, the crypto exchange. He said that the popularity and acceptance of DeFi were linked to more people realizing that smart contracts are as reliable and safe as any traditional bank deposit or loan.

The market acceptance by private investors is reflected in the funds that have been locked in Decentralized Finance. They are now moving funds away from the customary financial industry and moving to a decentralized system.  

The Total Value Locked of Decentralized Finance has witnessed a spurt due to the massive growth of multiple native tokens. But Kyu attributed the growth also to the better rates on offer by multiple DeFi platforms. The Total Value Locked of the DeFi sector increased by 53.45% in quarter 3 of 2021 as compared to the same period in 2020.

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According to Fernando Martinelli, CEO of Balancer Labs, a fresh upsurge of Decentralized Finance schemes is building up above the infrastructure already built in the 1st generation. This is pulling in more new cases and innovative products to multiple DeFi users.

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