The New Jersey Crypto News
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Dogecoin
    • All Alt Coin
  • Learn
    • Learn

      How to Trade Futures Contracts on Changelly PRO

      11/14/2021

      Learn

      EtherLite (ETL) Cryptocurrency Price Prediction

      11/12/2021

      Learn

      How to Trade Bitcoin Futures

      11/12/2021

      Learn

      How to Start Trading Cryptocurrency

      10/21/2021

      Learn

      How to Create Your Own Cryptocurrency

      10/13/2021

  • Analysis
    • Analysis

      Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

      12/29/2021

      Analysis

      Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

      12/29/2021

      Analysis

      Ethereum Recovery Could Soon Fade If ETH Fails To Surpass $4k

      12/28/2021

      Analysis

      Charles Hoskinson Shares Cardano Plans for 2022

      12/28/2021

      Analysis

      Bitcoin Prints Bullish Pattern, Why BTC Could Surge To $50K

      12/27/2021

  • Blockchain
    • Blockchain

      Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

      12/29/2021

      Blockchain

      Italian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG…

      12/29/2021

      Blockchain

      ProShares Files for New Metaverse ETF With U.S. SEC

      12/28/2021

      Blockchain

      Ozzy Osbourne Reveals Cryptobatz NFT Project Paying Tribute to His Iconic Bat Bite –…

      12/28/2021

      Blockchain

      Binance Trading Platform Licenses in Bahrain, Canada

      12/28/2021

  • Market Cap
All Alt Coin

Few reasons why Cardano’s founder may be wrong about DeFi being in a bubble

by Miki 09/17/2021
by Miki 09/17/2021 0 comment

In the months since Decentralized Finance (DeFi) emerged, many blockchains, including Cardano, have redesigned themselves to incorporate its advantages.

However, the creator of Cardano, Charles Hoskinson, believes that the entire DeFi space is merely in a bubble. What then? Well, the truth of the matter lies elsewhere since the analysis of on-chain data reveals something starkly different.

Is DeFi in a bubble?

DeFi can either be considered as the new fad or the next big thing, but not a bubble. Especially because since March 2020, the space has risen by 8589%.

Ethereum has been leading this space for a very long time and in fact, until January 2021, it held dominance of 97%.  

DeFi Market Cap up by 8589% since January 2021 | Source: TradingView – AMBCrypto

Since then, however, it has come down. In fact, it was 69% at press time, in terms of total protocols. How so? Well, the emergence of more smart-contract compatible blockchains such as Binance Smart Chain and Solana might be the answer.

With Cardano in, this competition is only getting tougher. Curiously though, the hike in participation has led to ETH’s TVL increasing by 525% YTD.

What’s more, his statement comes at a time when the Total Value Locked (TVL) in DeFi is inching closer to breaching $200 billion. 

Ethereum’s domination in the DeFi space has come down to 69% | Source: Defi Llama – AMBCrypto

Cardano founder compares DeFi with ICOs

During a recent episode of the podcast Word On The Block, Hoskinson said,

“I think DeFi is in a bubble and it’s always what happens — NFT and DeFi are the latest. It was the ICO revolution in 2017, it was the same situation.”

In addition to this, he said that while it isn’t necessarily a bad thing, people have overpriced its value. This, in return, has led to many new projects with negligible development teams hitting valuations of over a billion dollars.

But the thing is, DeFi differs from Initial Coin Offerings (ICO) in a significant way. The first and most important distinction being that DeFi has actual use cases. DeFi allows its investors to turn into users the minute they invest due to a wide array of services such as trading, lending, etc. 

Also, DeFi is real in the sense that it provides immediate value through liquidity to traders. Contrary to this is the fact that most ICOs never actually turned into anything useful.

Additionally, a recent Blockdata report actually found that DeFi is still in a growing phase. It observed that if institutions/banks decide to put even 1% of their AUM into DeFi, this space would be worth $1 trillion. That figure is close to the market cap of the mainstream crypto-space in itself.

DeFi TVL if  top 100 banks added 1% of their AUM | Source: Blockdata

Since 55 of the top 100 banks have already invested in crypto, it won’t be surprising to see them indulge in DeFi as well.

Ergo, Hoskinson here is not correct because if institutional interest grows, DeFi will only gain significance and lose its “bubble” label, whether warranted or not. 

Source link

Views: 0
BubbleCardanosDeFifounderReasonsWrong
Share
0
FacebookTwitterPinterestEmail
previous post
Reactions Trail OpenSea Insider Trading Gist
next post
South Korea May Have to Postpone Crypto Taxation, Lawmaker Declares

Related Posts

Are Solana’s bulls really strong enough to halt...

12/29/2021

IXFI Announces Launch of New-Age Exchange Platform

12/29/2021

Litecoin repeating history will have this effect on...

12/28/2021

More than just a game – what GameFi...

12/28/2021

Even as network hits one million users, FTT...

12/28/2021

Fintech Expert Makes Six Bold Predictions for Crypto...

12/28/2021

A recovery rally in play for Sushiswap, as...

12/28/2021

SEC Accused of Deliberately Trying to ‘Kill’ XRP...

12/28/2021

Recent gains may finally boost Aave’s dominance in...

12/28/2021

Santa Floki Price Rallies 5,000% after Elon Musk’s...

12/28/2021

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.

Recent Posts

  • Are Solana’s bulls really strong enough to halt further decline

    12/29/2021
  • Elon Musk thinks this individual could be the potential Bitcoin (BTC) creator Satoshi

    12/29/2021
  • Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

    12/29/2021
  • Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

    12/29/2021
  • Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

    12/29/2021

Categories

  • All Alt Coin (2,280)
  • Analysis (312)
  • Bitcoin (1,302)
  • Blockchain (1,068)
  • Dogecoin (700)
  • Ethereum (304)
  • Learn (139)
  • Ripple (149)

About Us

About Us

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, blockchain, Market, and more.

Featured Posts

  • What Is Apeswap.Finance? Complete Guide to New Decentralized Exchange

  • Don’t fear failure: lost crypto – gained experience

  • BTC Draws Closer To ATH Near $65,000 Amid Potential Demand From Developing Countries

Recent Posts

  • Are Solana’s bulls really strong enough to halt further decline

  • Elon Musk thinks this individual could be the potential Bitcoin (BTC) creator Satoshi

  • Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

Categories

  • All Alt Coin (2,280)
  • Analysis (312)
  • Bitcoin (1,302)
  • Blockchain (1,068)
  • Dogecoin (700)
  • Ethereum (304)
  • Learn (139)
  • Mining (0)
  • Ripple (149)
  • Uncategorized (0)
  • Facebook
  • Instagram
  • Linkedin
  • Contact
  • Privacy Policy
  • Terms & Conditions

@2021 -thecryptonewsweb.com - All Right Reserved.

The New Jersey Crypto News
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Dogecoin
    • All Alt Coin
  • Learn
    • Learn

      How to Trade Futures Contracts on Changelly PRO

      11/14/2021

      Learn

      EtherLite (ETL) Cryptocurrency Price Prediction

      11/12/2021

      Learn

      How to Trade Bitcoin Futures

      11/12/2021

      Learn

      How to Start Trading Cryptocurrency

      10/21/2021

      Learn

      How to Create Your Own Cryptocurrency

      10/13/2021

  • Analysis
    • Analysis

      Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

      12/29/2021

      Analysis

      Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

      12/29/2021

      Analysis

      Ethereum Recovery Could Soon Fade If ETH Fails To Surpass $4k

      12/28/2021

      Analysis

      Charles Hoskinson Shares Cardano Plans for 2022

      12/28/2021

      Analysis

      Bitcoin Prints Bullish Pattern, Why BTC Could Surge To $50K

      12/27/2021

  • Blockchain
    • Blockchain

      Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

      12/29/2021

      Blockchain

      Italian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG…

      12/29/2021

      Blockchain

      ProShares Files for New Metaverse ETF With U.S. SEC

      12/28/2021

      Blockchain

      Ozzy Osbourne Reveals Cryptobatz NFT Project Paying Tribute to His Iconic Bat Bite –…

      12/28/2021

      Blockchain

      Binance Trading Platform Licenses in Bahrain, Canada

      12/28/2021

  • Market Cap
  • RelevantRelevant(REL)$0.825.35%
  • Heart NumberHeart Number(HTN)$0.000553-30.47%
  • TadpoleTadpole(TAD)$7.32-1.76%
  • SEENSEEN(SEEN)$2.05-2.27%
  • EvedoEvedo(EVED)$0.082301-0.80%
  • MarginswapMarginswap(MFI)$0.184214-2.17%
  • SakeTokenSakeToken(SAKE)$0.0127234.37%
  • WTF TokenWTF Token(WTF)$0.0113500.16%
  • BNSD FinanceBNSD Finance(BNSD)$0.005460-5.83%
  • RobotinaRobotina(ROX)$0.00266138.50%
  • CageCage(C4G3)$0.005010-3.67%
  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • PolkaBridgePolkaBridge(PBR)$0.439876-7.02%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Falcon ProjectFalcon Project(FNT)$0.000366-2.23%
  • DYORDYOR(DYOR)$0.00002020.53%
  • TICOEX TokenTICOEX Token(TICO)$0.0013640.52%
  • MMS Cash TokenMMS Cash Token(MCASH)$1.000.00%
  • bitcoinBitcoin(BTC)$29,749.001.50%
  • ethereumEthereum(ETH)$1,968.25-0.17%
  • tetherTether(USDT)$1.00-0.14%
  • binancecoinBNB(BNB)$331.933.06%
  • usd-coinUSD Coin(USDC)$1.00-0.04%
  • rippleXRP(XRP)$0.399798-1.39%
  • Binance USDBinance USD(BUSD)$1.00-0.12%
  • cardanoCardano(ADA)$0.520.35%
  • SolanaSolana(SOL)$48.94-0.95%
  • polkadotPolkadot(DOT)$10.092.40%
  • dogecoinDogecoin(DOGE)$0.083137-0.45%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$29,704.001.37%
  • Lido Staked EtherLido Staked Ether(STETH)$1,924.13-0.24%
  • AvalancheAvalanche(AVAX)$28.54-0.64%
  • tronTRON(TRX)$0.080841-0.85%
  • VectoriumVectorium(VECT)$425.81-3.49%
  • Shiba InuShiba Inu(SHIB)$0.000012-0.47%
  • daiDai(DAI)$1.00-0.17%
  • Power CashPower Cash(PRCH)$0.017570881.24%
  • AlexAlex(ALEX)$0.068435-0.04%
  • litecoinLitecoin(LTC)$69.31-0.75%
  • CronosCronos(CRO)$0.1875960.67%
  • LADZLADZ(LADZ)$0.0686894.36%
  • leo-tokenLEO Token(LEO)$4.880.20%
  • matic-networkPolygon(MATIC)$0.640.82%
  • NEAR ProtocolNEAR Protocol(NEAR)$5.830.42%
  • HederaHedera(HBAR)$0.389473-3.44%
  • FTX TokenFTX Token(FTT)$29.600.02%
  • bitcoin-cashBitcoin Cash(BCH)$192.550.47%
  • RareRare(RARE)$0.0461220.00%
  • moneroMonero(XMR)$200.565.86%