Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: Malam90 on January 26, 2021, 02:35:26 AM
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The past year has been a crazy journey for the blockchain industry. Between the crippling effects of the COVID-19 pandemic across various sectors and Bitcoin’s marathon bull run, the year has been great for some and catastrophic for many.
Decentralized finance is at the epicenter of most of the hype surrounding blockchain today. From the rise of mainstream decentralized exchanges to the overwhelming demand for liquidity mining, DeFi hasn’t just raised a lot of dust — it’s brought billions of dollars onto blockchains.
On June 15, DeFi platform Compound started distributing its COMP token to users, handing governance control of its protocol to the people. By Aug. 15, over $1 billion worth of Wrapped Bitcoin (WBTC) had been sold, allowing even Bitcoin holders to access the world of Ethereum-based DeFi applications.
Now, some DEXes even rival centralized exchanges, and the term “vampire mining” will always remind us of blockchain instead of pale bloodsucking creatures with pickaxes and safety helmets. But while DeFi lit the fireworks last year, it was Bitcoin (BTC) that made everyone stop and stare. Its unprecedented rise to nearly $40,000 makes it one of the most profitable and fastest-growing assets in history.
But was DeFi at least partly responsible for this? Earlier stages of Bitcoin’s rise were negatively correlated with DeFi, with many even speculating that this resulted from funds being transferred from DeFi platforms to Bitcoin. The total value of digital assets locked into smart contracts has grown a hundredfold in the last two years. However, much of this growth has taken place in the previous few months and is more due to the appreciation of already invested assets than a surge in new investments. Source Link (https://cointelegraph.com/news/the-perfect-match-both-bitcoin-and-defi-push-and-pull-crypto-markets)