Bitcoin Forum

The crypto sector has seen a fair share of speculations over the past decade, but the recent decentralized finance (DeFi) boom has opened up new opportunities for crypto enthusiasts – to bet on DeFi’s development.

The Gnosis-based prediction market, Polymarket, created a betting opportunity for crypto enthusiasts to guess what will be the total value locked in DeFi before January 1, 2021. The betting started at $4.12 billion last week, but quickly jumped to as high as $5,16 billion, as of press time.

The predictions can be seen as PolyMarket being bullish on the future of DeFi.

Decentralized Finance usually operates by “locking in” a certain amount of crypto assets, primarily Ethereum but sometimes Bitcoin is locked too. In return, DeFi tokens and/or a promised interest are granted to holders. Interestingly, users are more and more interested in the DeFi sector, as its “locked-in” value rises exponentially.

Indeed, the total value locked in DeFi projects gained $1 billion dollars in just two weeks – DeFi struck the $2 billion mark on July 7, 2020, but as of press time the locked in value tokens increased to over $3 billion. However, this is not the first kind of bullish momentum for the sector, as three weeks prior to hitting the $2 billion mark the DeFi sector managed to make it into the billions.

Crypto experts are considering that a significant part of DeFi’s recent explosion is Compound’s governance token release on June 15, 2020. In just 24 hours Compound’s COMP token managed to surpass Maker and take the lead in the DeFi realm.

However, the experts are taking a rather cautious approach towards the betting, as there are little over $1,500 in bets, so a few large-scale bets could alter the prices and make them swing.

Furthermore, DeFi Pulse noted that the total value locked (TVL) has exploded several times before, but quickly rebounded. For example, the TVL went up from $692 million to $1.26 billion from January 1, 2020 to February 14, 2020. A month later, the TVL rate bounced back and went down to $600 million.

Meanwhile, the debate around DeFi token valuations divided crypto investors, as innovative protocols like Aave and Synthetix are with higher demands, compared to MakerDAO.

Investors are either undervaluing or overvaluing the DeFi sector. Some investors think that it’s a perfect time to jump aboard the DeFi social media hype, as the sector became the fifth-most searched crypto-related term on social media, as well as marking an all-time high in social media activities track.

many normal coins are slowly transitioning into DeFi space which will increase market cap even more.

When I see this whole new hype about Defi it reminds me of the days of 2017 lol. ICOs surely came with good projects but most of them died out leaving investors rent. This is the same thing that is going to happen to some individuals in this current Defi hype.

DeFi is more than just a hype, It's the people who are actually becoming interested day by day in this new financial system. Specially now that a lot of people are so concerned about their assets sitting in the banks and they need to experience another alternative of a financial system that gives them full access of their money without any validation from a third party company like banks.

Therefore, that total value is expected and anticipated. 

I think it is time to be careful of Defi projects now because the hype is getting too much and could end badly mostly wit newer projects. About the $5 billion in value, this looks exaggerated because once others or rather newer Defi projects starts coming up in mass, attention will be divided and drawn from already developed ones hence that mark might not be reach; this case scenario depends on if there aren't scam Defi projects. But can one rule out the fact that scammers will likely not develop theirs? No, hence another reason this anticipated value might not be reached.

More than that, and one thing that put more hype on this is that you can put a bet on what will be the price at the end of the year, What will the total value locked (TVL) in DeFi be at the end of 2020, according to DefiPulse?(Range: $1.00B-$9.00B) (https://poly.market/market/what-will-the-total-value-locked-tvl-in-defi-be-at-the-end-of-2020-according-to-defipulse). Run by Polymarket, a Gnosis-based prediction market, so it will be very bullish, that's for sure.

Indeed! With the hype surrounding DeFi projects, there will be scammers that will use this platform to deceive their investors. As we all have seen, these scammers are getting better in deceiving the community. For now, it is better to stick with the known and established DeFi project like Chainlink. But for newcomers, you have to scrutinize it before jumping on the bandwagon.

Are there really so much hype around Defi that it could really reach $5 Billion?

I think that $10 billion can be reached in the near future, see how fast they grow, I wonder how long it will last.

Every project is now trying to become a DeFi project first BEAM announced about their DeFi product now ARPA is also announcing about DeFi product ( link (http://"https://twitter.com/arpaofficial/status/1287058258620895232")) looks like every project wants to take advantage of this DeFi trend.

Thank you for this link, I'm not aware that you can bet and sell your options with this Polymarket. And it's interesting to note as well that based on it, Defi is now around $7 billion. So definitely it could be as hype as the ICO in 2017, but here's the thing, people are actually make money, but you have to wait for months or years because getting the profit and this is a good thing and that is why it is growing rapidly.

I read some news that it has broken $5 billion already (not sure the $7 billion), so I guess all investors are jumping in and trying to make a slice out of that big pie. So if we go by that axiom, the more people to enter the picture the more it will grow obviously and it can trigger the next bull run for altcoin market, which looks like it has started as ETH has broken $300. So it looks like it we are moving in the right direction with DeFi but I will still be cautious.

Are there really so much hype around Defi that it could really reach $5 Billion? Was really shock to read this article as the market really anticipated a huge boom with this Defi offerings around. And as coinmarketcap is already jumping as it it is already displaying it in their platform.


https://thecapital.io/article/defi-anticipated-to-reach--billion-in-total-value-MCqdHmWPbfBSD0UY6YR

Crypto is so unpredictable, first it was ICO success in 2017 that bring a new breath into crypto market and now it's DeFi projects turn, I believe it's why Ethereum is been very bullish too, I do hope this continues and if it does be expecting a new altcoin season soon

I don't think Defi is the real reason for the pump of the price of Ethereum. I think that the misunderstanding of people increases ETH price. Defi is just the current hype in the market that will continue until the end of the year.

I don't think Defi is the real reason for the pump of the price of Ethereum. I think that the misunderstanding of people increases ETH price. Defi is just the current hype in the market that will continue until the end of the year.

$5 billion is already a lot of money isn't it? So for me this is not just a hype as the money involved is huge already. Yes, ETH is really doing good because of this DeFi and having its all bull run. But DeFi is different though in my opinion, everyone can say that this is hype all along but we will have to wait when this bubble are going to be burst or when the parabolic rise ended.

Any project that adds Defi to the project has risen sharply in the past few days, and this investment trend is sure to help a lot of people make good profits from the market. Currently, the Defi projects are contributing to making the altcoin season return because today the value of Bitcoin has exceeded $10,000 and everyone seems very excited. I believe that if the Defi trend continues, then everyone will be able to make a lot of great profits from the market.

There's a big probability this could happen in fact the price aggregator Coingecko has anticipated these they already created a page dedicated to Defi to track it's market performance you can check it out here
https://www.coingecko.com/en/defi  Chainlink is leading the DeFi project but I expect for some projects to catch up.