The crypto market, which has been dependent on the movements of Bitcoin for a long time, has been going through an unexcited period for a while. While Ethereum was looking for its old days, Ripple investors were not happy either, as XRP is far from its old peak. While everything was going smoothly, a brand new industry emerged, reminiscent of the ICO bubble of 2017: DeFi. So what’s happening in this industry lately? Let’s look at the latest updates.
1- “$200 million staking in 12 hours”
The yield-farming frenzy continues. Investors poured $200 million in 12 hours into a YAM-like DeFi protocol. While it is stated that the token is a “meme coin”, it seems that this is not very important for investors.
In just 12 hours, 203 million dollars of digital assets were invested in the protocol called Spaghetti. But Spaghetti does not have a public team and its code has not been audited. So remember that no one can make any guarantees about security and it is recommended to control your excitement.
2- DeFi interest shifts from retail investors to whales
The controversy over high Ethereum GAS fees took a new dimension due to the popularity of DeFi platforms and Yeild Farming. At the time of publishing, a total of approximately $6,21 billion has been locked on DeFi platforms. About $5 billion is locked in five DeFi projects, consisting of Maker (MKR), Aave (LEND), Curve Finance (CRV), Synthetix (SNX) and Compound (COMP).
According to Coinmetrics, high ETH fees are driving retail users out of the market, making DeFi a playground for whales. As a result of the high ETH fees, some users are leaving DeFi. Because only whales can afford these huge fees.
3- Huobi created a DeFi consortium
Huobi DeFi Labs, the new research and incubation platform of Huobi Group focusing on decentralized finance, has launched a new consortium.
The initiative defined as “an international consortium of centralized and decentralized financial service providers and platforms”; it will work in partnership with MakerDAO, Compound, Nest and dYdX.
4- BitMEX starts KYC implementation
Earlier this year, rumors began to spread that the leading Bitcoin derivatives platform BitMEX was on the verge of implementing “Know Your Customer (KYC)” procedures. These rumors were later confirmed.
Analysts have mixed views on what this means for Bitcoin. However, the majority agree that BitMEX’s imposition of KYC on its customers will create an enormous surge for Ethereum’s DeFi ecosystem. Of course, we can assume that most users will go to centralized exchanges that do not implement KYC. But the rest will move to DeFi.
