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DeFi Sunday: The industry is pushing cryptocurrencies above 2% of the global money supply

The cryptocurrency market currently accounts for more than 2% of the total global money supply, and DeFi industry is making a significant contribution to this figure. A number of institutional investors are interested in decentralized finance and perceive the potential for high returns on Bitcoin, altcoins and also stablecoins.

Don't look at Shiba Inu and similar cryptocurrencies, the future is in DeFi

Cryptocurrency news are literally flooded by information about Shiba Inu (SHIB), Dogecoin (DOGE), Safemoon (SAFEMOON) and similar other "cryptocurrencies". However, according to Delphi Digital, we should focus more on the decentralized finance sector, which is constantly gaining momentum. Institutional investors are also increasingly interested in DeFi and are beginning to perceive the potential for high returns on Bitcoin, altcoins and stablecoins. The cryptocurrency market currently accounts for more than 2% of the total global money supply, and DeFi industry is making a significant contribution to this figure. Bitcoin accounts for almost half of this volume and the rest is in hands of other sectors and projects, including DeFi.

Cryptocurrency percentage of total global money supply Cryptocurrency percentage of total global money supply, Source: Delphi Digital

Most of DeFi's growth is due to Ethereum blockchain projects, notably the Binance Smart Chain (BSC), Solana (SOL), Avalanche (AVAX), Polygon (MATIC) and Terra (LUNA) ecosystems. These currently cover 34% of the total value locked in DeFi.

The key infrastructure is based around stablecoins

According to Delphi Digital, native DeFi stablecoins play an important role in DeFi growth and currently account for nearly $ 10 billion of the total market cap. The largest DeFi stablecoin is DAI, which covers $ 4 billion in capital and the fastest-growing is UST, the stablecoin of the Terra ecosystem.

Individual DeFi ecosystems are gaining strength relatively quickly

Binance Smart Chain is one of the fastest-growing DeFi ecosystems. Its development is, of course, significantly accelerated thanks to Binance's almost unlimited resources. The investments enable the creation and launch of quality native protocols and the largest ones include PancakeBunny (BUNNY), Venus (XVS) and PancakeSwap (CAKE).

DeFi - Concept of blockchain, decentralized financial system DeFi - Concept of blockchain, decentralized financial system, Source: shutterstock.com

The total value locked in these protocols is nearly $ 50 billion, and all first-layer ecosystems have so far exceeded $ 130 billion in cumulative total value locked (TVL).

The well-known company Huobi Group comes with huge support for the sector

Huobi Group is one of the largest blockchain companies in the world and, among other things, is behind the well-known crypto exchange with the same name - Huobi. They recently announced that they will launch a new subsidiary, Huobi Ventures, which will cover their investment activities.

According to information, Huobi Ventures will manage a portfolio worth $ 100 million and should invest mainly in blockchain and DeFi projects in the initial stages. To date, Huobi has invested $ 69 million in hundreds of projects and the estimated balance of their portfolio is $ 215 million.

Slavomír is working in the field of cryptocurrencies since 2018. As a Co-Founder and Chief Marketing Officer of Dollero Technology, which is currently developing a crypto exchange ...

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