The Locked Total Value (TVL) figure for DeFi DeFi reached $ 9.76 billion. The DeFi domain has unlocked 477.5% in terms of growth over the past 90 days and shows no signs of stopping. Although the SushiSwap incident contributed to the decline in DeFi’s TVL, there was a later recovery and the area is now doing fine. Considering TVL is down 40% in 10 days and then returns, a question arises: Is DeFi in God Mode?
God Mode is traditionally a game metaphor, referring to a cheat code that makes the player character somehow invincible. With its incredible surge, sudden fall, and even an incredible resurgence, DeFi seems to take on the God Mode features with such invincibility.
DeFi Outperforms ICOs
However, in the context of Bitcoin (BTC), it can also be argued that DeFi played the role of ICOs in 2017. In fact, some have noted parallels between the top 3 ICOs of 2017 – Filecoin, Sirin Labs and Tezos, and the top 3 DeFi Projects Uniswap, Aave and Curve Finance. TVL in these top 3 DeFi projects was around $ 4.5 billion at the time of writing. On the contrary, the total investment collected by the top 3 ICO projects was only $ 646 million. Apparently, DeFi seems to outperform 2017 ICOs when they are juxtaposed.
Considering the current market cycle of Bitcoin, it can also be seen that institutional investors such as MicroStrategy and Grayscale are bullish on BTC. And perhaps because it is, DeFi is reaping value from such increased attention and investment and contributing to the already healthy market value.
Speculation and interest in Bitcoin were the basis of the ICO craze in 2017-18, and something similar is emerging for DeFi right now. In fact, we could argue that as TVL for the top 3 DeFi Projects grows by 20-25% every day, the second is rising at a greater pace. For example, yEarn Finance’s YFI token increased by 14900% in value in just one week. In Anda God Mode, What About Later?…