What can be the reasons for this exponential growth of #DeFi?

[mirrasel]

Have a look at the Digital Asset Market Performance of last week.  What can be the reasons for this exponential growth of #DeFi?




👍 https://www.bitcurate.com is the best place to analyze, research, understand, and forecast your #cryptocurrency investments.

[poodle63]

The main reason should be hype. People were also starting to see the crypto currency based on the product and most of defi projects were developing the product and this is what already searched by so many investors too.

[rhomelmabini]

Exactly it's "hype". Well, I'd say we are on the brink of being crowded on the defi space and sooner or later we'll see scams involving defi. Scammers are looking now into this industry just like what happen way back 2017 with the crowded ICO on place. Just my opinion but my hunch tells me it will be the same as to this defi.

[Ucy]

I guess, "easy money" pouring into something that is probably not well tested/reviewed for true decentralization and safety.  Decentralization matters alot here because  it's called "Decentralized" Finance, so why build centralized things on Decentralized Finance (DeFi)?  The centralized ones could simply use the crypto-based CeFi (to avoid the confusion) and maybe comeback on Defi once they have become properly decentralized and safe.
I think it'll be unfortunate if people are not asked to put in what they can afford to lose, as such projects develop and go through testing/beta phase.
 It'll be tolerable though if the tokens are gotten for free... and something really decentralized, good, useful and safe/secure is being built. The opposite of this coupled with staking could easily drive price up on the DeFi ecosystem in similar manner yam price rose up.
And I think if you make the money/token a bit harder to have (people get them through hardwork on the platform & not given unnecessarily for free), and without unnecessary staking/coin-lockup, price won't be skyrocketing this early. This doesn't mean staking is not good... The right staking should be encouraged or used.

[bigcash2011]

Have a look at the Digital Asset Market Performance of last week.  What can be the reasons for this exponential growth of #DeFi?




👍 https://www.bitcurate.com is the best place to analyze, research, understand, and forecast your #cryptocurrency investments.

DeFi growth is the result of demand, most of the tokens of the defi based projects offer high returns to lend or stake the tokens on their platform that is simply the reason why people are purchasing their tokens more and more and this is driving the price exponentially.

[Princejebs]

Have a look at the Digital Asset Market Performance of last week.  What can be the reasons for this exponential growth of #DeFi?

👍 https://www.bitcurate.com is the best place to analyze, research, understand, and forecast your #cryptocurrency investments.

From my own point view, 60% people investing on defi don't know what they are all about, just to make few bucks of profit and move into another, only few does stay for the real Defi.
Yearn Finance was one of the crazy tokens that made immense gain this month because of its little supply, hype and nothing more.
Lets hope the true decentralised finance continues and real case used scenario.

[nutriagrigia]

Exactly it's "hype". Well, I'd say we are on the brink of being crowded on the defi space and sooner or later we'll see scams involving defi. Scammers are looking now into this industry just like what happen way back 2017 with the crowded ICO on place. Just my opinion but my hunch tells me it will be the same as to this defi.

There are already a lot of scammers and I think that some projects that have already entered the market are also scammers. They hide very well and it is difficult to understand that they want to steal your money, but if we will be careful, we will not lose money.

[leea-1334]

Exactly it's "hype". Well, I'd say we are on the brink of being crowded on the defi space and sooner or later we'll see scams involving defi. Scammers are looking now into this industry just like what happen way back 2017 with the crowded ICO on place. Just my opinion but my hunch tells me it will be the same as to this defi.

I have been saying this for many times now in many different threads,,, I do not see any good news when I read all the Defi things. To me this is just like gambling dapps on Ethereum,,, more sophisticated but the same people playing with money all around.

[tsaroz]

Exactly it's "hype". Well, I'd say we are on the brink of being crowded on the defi space and sooner or later we'll see scams involving defi. Scammers are looking now into this industry just like what happen way back 2017 with the crowded ICO on place. Just my opinion but my hunch tells me it will be the same as to this defi.

I have been saying this for many times now in many different threads,,, I do not see any good news when I read all the Defi things. To me this is just like gambling dapps on Ethereum,,, more sophisticated but the same people playing with money all around.

There were a bit of genuine interest on defi as they solve as well as automate a broad business that has been already established by central agencies. But the current increase in price of defi tokens are unnatural and unsustainable. I don't know the exact point but when compound finance issued their own token, the prices of every defi coins started to increase without taking in consideration of increase in transaction volume and use of these defi. It's a pure hype and a bubble which is going to burst soon.

[bgaf]

I have been saying this for many times now in many different threads,,, I do not see any good news when I read all the Defi things. To me this is just like gambling dapps on Ethereum,,, more sophisticated but the same people playing with money all around.

Yeah its probably the same people that gambling with these defi projects. Once they are through, transfer again to a newer one. I become interested into defi and exploring how these things are done and the profits they are ripping are too big and sometime only for a short period of time. I like to think that many projects are just luring all these traders to their bait. But once you already acknowledge the process then boom. Earning will become an easy play.

[ryzaadit]

The thing coming into my mind only.

Less supply and so many tokens got locked could be same as a lending platform, but the honest the main service they want to offer always giving some percentage profit from the stake/lending they are offering the other service giving some loans with cryptocurrency as collateral. At least some they are not giving un ridiculous interest to their customer or not paying them with USD.

[Captain Corporate]

 Probably hype, there is nothing that comes to my mind other than hype, just because there have been some stuff that made money to some people, everyone thinks they will make a ton of money once again. You have to realize that there haven't been too many things that made people any profit in a long time, people all have been looking for something that would make them money and there has been zero of them around, yet after a while people saw this defi thing that started to make some money to some people and hoped that the thing they were looking for could be defi so they all jumped into that.

 All of this hype is dangerous obviously, one day this hype will die down and the last one standing will hold a huge bag, I hope that people are ready to get in but also ready to get out when needed as well so they are not the ones holding the bag.

[kindbtc]

Have a look at the Digital Asset Market Performance of last week.  What can be the reasons for this exponential growth of #DeFi?




👍 https://www.bitcurate.com is the best place to analyze, research, understand, and forecast your #cryptocurrency investments.

The exponential growth of defi is nothing but simply the result of the business model, it is basic human nature to look for passive income, extra/second income or additional residual revenue streams. All these things are what make defi attractive and a lot of crypto investor are lured to stake their holdings in defi in expectation of good returns.

[rhomelmabini]

Exactly it's "hype". Well, I'd say we are on the brink of being crowded on the defi space and sooner or later we'll see scams involving defi. Scammers are looking now into this industry just like what happen way back 2017 with the crowded ICO on place. Just my opinion but my hunch tells me it will be the same as to this defi.

I have been saying this for many times now in many different threads,,, I do not see any good news when I read all the Defi things. To me this is just like gambling dapps on Ethereum,,, more sophisticated but the same people playing with money all around.

There were a bit of genuine interest on defi as they solve as well as automate a broad business that has been already established by central agencies. But the current increase in price of defi tokens are unnatural and unsustainable. I don't know the exact point but when compound finance issued their own token, the prices of every defi coins started to increase without taking in consideration of increase in transaction volume and use of these defi. It's a pure hype and a bubble which is going to burst soon.

That for sure will truly gets us to know what are the real value of this DeFi, right now I think those are overvalued. It's get listed on exchanges one after the other to get more hyped, though that a bad thing if you want to earn quick bucks but in the end if you are not paying attention this thing will gonna get you rekt.

[jossiel]

What can be the reasons for this exponential growth of #DeFi?

Hype and high chance of profitability.

When investors sees a new trend of investment, they'll come get in as early as they can while it's very much profitable. The hype isn't yet gone so there seem to be an unstoppable growth rate for DeFi.

But the same as ICOs before, it's a matter of time that they'll start to get low due to scams and lowering in demand.

[Kemarit]

Have a look at the Digital Asset Market Performance of last week.  What can be the reasons for this exponential growth of #DeFi?

It's simply FOMO, people doesn't want to miss the hype train so they are jumping as early as today.

And I'm sure those who learn from this mistakes during the ICO boom of 2017. That's why experience traders and investors wanted to get in the beginning to squeeze as much profit as they can in the new Defi hype.

[bbc.reporter]

@Kemarit. Agreed! You tell them hehehe. However, it appears no one cares about the lessons of the ICO boom of 2017.

Also this article. Defi is described as a zero sum game. If there is someone profiting, there is someone else paying. Similar to a ponzi?



Ethereum’s yield farming space is reaching such a fever pitch that some of its biggest proponents are asserting that they’re skeptical of the longevity of this fad.

“Weeb Mcgee,” a developer whose real name is John Lim, recently asserted that he thinks the ongoing “yield farming meta” is “an unsustainable zero sum game.” Mcgee is best known for launching yieldfarming.info, a site that provides timely data on DeFi protocols.

“Yep. I’m on the record saying yield farming meta is an unsustainable zero sum game. The big winners here are protocols benefitting by capturing permanent value via inflated prices / sudden movements of funds,” Mcgee said.

Mcgee isn’t the only proponent of Ethereum to have recently asserted that the yield farming trend is getting a bit out of hand.

Source https://cryptoslate.com/defi-yield-farming-is-an-unsustainable-zero-sum-game-ethereum-innovator/

[Argoo]

Despite a lot of skepticism about DeFi projects, I see them as a good prospect, as they offer real financial services to participants in this market. The emergence of various civil transactions on blockchain technology and using smart contracts solves issues that were previously in the hands of banks. Now DeFi began to really compete with banks, because loan, credit, and deposit agreements have ceased to be the privilege of banks.

[nicecrypto]

The same reason that was during the ico period, lots of hype, crypto is all about creating huge hype to get peoples attention, defi project was able to create that huge hype to get the attention of crypto lovers and investors, look at what compound did, then link, band, dia and some other defi projects, now everyone is looking for the next defi project to make easy profit, soon it will end like ico and ieo when the next crowdfunding will appear.

[Inkdull]

Hypes don't just developed out of nothing, it's the product of DeFi that built the hype and the success keeps spreading to newbies too, it's same thing that got to people in 2017, this is so normal isn't it?