• In 2020, the total locked value of DeFi has increased by 270%, most of which have come in the past month. 
  • DeFi earnings dropped by 42% in Q2 of 2020 due to MakerDAO and Synthetix.
  • DeFi is currently the most bullish aspect of the cryptocurrency market. 

Decentralized finance (DeFi) markets have hit another all-time high of total value locked (TVL) by reaching $2.55 billion. In 2020, DeFi TVL has surged by 270%, most of which has come in the past month. Under the Simple Agreement for Future Governance (SAFG) model, protocols can compliantly distribute tokens in virtually any jurisdiction to users for providing value-added services to the platform. According to a BeInCrypto report, this model has helped multiple token launches over the past quarter, which has drastically shifted the balance in the DeFi space.

Renowned analyst Lucas Campbell plotted the PE ratios for the top DeFi tokens and said that the excitement around liquidity farming has resulted in impressive performances. PE, or price to earnings ratio, is now being used to determine the value for DeFi coins. In the second quarter of this year, DeFi assets have surged by 199%, significantly outperforming both ETH and BTC.

Bancor’s BNT is the best performer for the quarter as it spiked 546% following the announcement of the V2 upgrade for the liquidity protocol. Following this is Aave’s LEND with a gain of 514% over the last three months. 

A report by Bankless shows that DeFi earnings were down in Q2. This decline is attributed to MakerDAO and Synthetix protocols. MarkerDAO’s quarterly earnings declined by 87% from $1.2 million in Q1 to $152k in Q2. From around $2 million, Synthetix’s reported earnings plummeted down to around $267k in Q2, the report added. However, this was balanced by other well-performing assets. Kyber, Compound, and dYdX have become the top earners in the second quarter by bringing in $634,000, $624,700, and $624,000, respectively. The report concluded by saying:

As such, we’re beginning to see an increasingly diverse ecosystem for DeFi protocols as they begin to compete for a slice of the market share.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

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