CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$49,728.00
  • ethereum
    ETH$1,647.93
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Messari: DeFi is Smaller Than Some Worthless Cryptos

    Messari: DeFi is Smaller Than Some Worthless Cryptos

    Author: Martin Young

    Last Updated Jul 29, 2020 @ 10:44

    Recent research has shed light on the DeFi market, highlighting how small it really is compared to other crypto assets. The nascent still has a very long way to go in the grand scheme of things.

    Messari crypto researcher, Ryan Watkins, has recently delved into the market values of the decentralized finance sector, comparing it to some of the other players in the crypto industry. He concluded that DeFi is still a minnow despite its massive growth in popularity this year.

    The entirety of what we call DeFi is worth less than both XRP and Bitcoin Cash alone.

    Despite its rerating over the past couple months, DeFi is still extremely small in perspective.

    1/ pic.twitter.com/rd4LZbDeu6

    — Ryan Watkins (@RyanWatkins_) July 28, 2020

    The total value locked across all DeFi platforms is close to its all-time high of $3.71 billion, according to Defi Pulse. That epic feat has been achieved in less than two months, and this year alone, TVL has grown by 440%.

    DeFi is Still Tiny

    Comparatively, the total crypto market capitalization has only managed to gain 68% over the same period. As a percentage of the overall market cap for crypto, which currently stands at $324 billion, collateral locked into DeFi smart contracts represents just 1.13%.

    Watkins compared the size of the DeFi platforms in terms of market cap and stated that combined. They’re worth less than Bitcoin Cash, which currently has a $5.3 billion capitalization. He added that it is an order of magnitude smaller than all of the Layer 1 blockchain projects, aside from BTC and ETH, combined, which are collectively worth $45.7 billion.

    Worthless Altcoins

    Pretty much labeling the majority of altcoins worthless, Watkins added:

    “The top 30 cryptoassets outside BTC and ETH is full of useless first-gen cryptocurrencies, ghost town “ETH killers”, and dead projects.”

    Comparing individual DeFi platforms, he observed that even the meme coin, Dogecoin, was worth more than all of them with the exception of Maker. Doge currently has a market cap of $408 million, whereas Maker is only three places above it with $463 million, according to Coingecko.

    Other DeFi protocol tokens from platforms such as Aave, Compound, Synthetix, Kyber, and 0x are smaller than the ‘useless’ Shiba Inu based token. The researcher went on to lambaste other cryptocurrencies labeling Litecoin as ‘dead,’ and IOTA as ‘unworkable.’ It is true that in terms of market performance at least, several high cap cryptocurrencies such as XRP, BCH, Litecoin, and EOS have managed very little this year.

    Watkins concluded that DeFi doesn’t need new money flowing into crypto to continue its rise, adding that all it needs is a reallocation of capital.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • synthetix_cover
      Unraveling DeFi: An Interview With Synthetix About How Synths Work
    • 4 Things That Could Cause the DeFi Bubble to Pop
    • bearchart
      DeFi Tokens Bleed Out as Crypto Markets Correct
    Read more on: Bitcoin DeFi Dogecoin Ethereum Litecoin

    About The Author

    Martin J. Young View more posts by this author

    Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

  • bitcoin
    BTC$49,728.00
  • ethereum
    ETH$1,647.93
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    pionexb
    2local
    Bitcoin Editorials
    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!