HomeBlockchainBinance's monthly report confirms the rise of DeFi

Binance’s monthly report confirms the rise of DeFi

Binance has published a new monthly report for August 2020 highlighting the success of DeFi in particular. 

First and foremost, the August rise of the Total Value Locked (TVL) in DeFi protocols, which exceeded $8 billion at the end of the month, is described as “parabolic”.

The upward trend of DeFi was almost constant throughout the month, with an overall increase in TVL of over 90%, and saw the Aave protocol (LEND) overtaking Maker (MKR) becoming the new DeFi protocol for locked funds. 

Another major driver of growth was Yearn.finance’s native governance token, YFI, with a market capitalization that grew 10 times in a single month, from 127 million to over $1.1 billion. According to Binance’s report, this exponential growth is mainly due to a limited supply, a strong and active community, a reliable development team and innovative products. 

The exchange also claims to have done its part by launching the DeFi Composite Index Futures, tradable assets in the perpetual futures offering with a USDT margin. 

In this regard, the report reveals that over 90% of traders continue to hold long positions on DeFi, despite the recent volatility, highlighting a bullish sentiment among investors.

This boom in DeFi has also led to an increase in trading volume on altcoin futures contracts, with a new record high at the beginning of August in aggregate volume exceeding $20 billion. 

On Binance the daily record occurred on August 14th, with over $5.8 billion traded, while the average daily trading volume on altcoin futures was $3.4 billion. 

In addition, the volume on Binance Futures increased by 79% compared to July, reaching a new monthly record of $195 billion, with an average daily volume of $6.3 billion.

A significant part of this growth in volume is due to contracts on altcoins, and in particular to DeFi-related cryptocurrencies. 

The volume dominance of altcoins grew from 38% to 68% towards the end of the month, with an average of 53% in August and 45% in July.

Finally, due to the continued issuance of dollars by the US Federal Reserve and its counterparts, the report reveals that investors are turning their attention to alternative assets such as cryptocurrencies and gold.

This inflow of capital would also underlie the new trend in the crypto world towards decentralized finance, as many DeFi projects also provide decentralized financial services, including high-yield interest income and low-interest loans. 

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".