The CoinGecko service calculated that in 2021 the capital market in the decentralized finance sector grew 7.5 times, to $150 billion.
Cryptocurrency aggregator CoinGecko in its 2021 report
gives figures, according to which the capitalization of decentralized finance protocols has grown from $20 billion to $150 billion in 2021. Their share in the crypto industry has more than doubled, from 2.8% to 6.5%.
The report notes the emergence of new generation products that seek to improve the design of existing protocols. The authors of the report believe that this factor led to the prosperity of the DeFi sector in the fourth quarter of 2021. The paper highlights that the growth of incentives in new EVM (Ethereum Virtual Machine) alternative networks, including Cronos, Aurora and Boba, has further boosted demand for DeFi tokens.
The DeFi sector has undergone major changes throughout the year. Ethereum and Binance Smart Chain became leaders in the first quarter. In Q2, EVM-based projects such as Polygon and Fantom rose to prominence for gas cost savings and high network performance. Non-EVM projects such as Solana and Terra gained momentum in Q4.
According to analysts, yield aggregators and insurance services gained the upper hand in 2021, while large platforms such as DEX, oracles and lending platforms suffered losses. The total trading volume on the ten largest NFT trading floors amounted to almost $24 billion. The OpenSea marketplace was the largest contributor to NFT trading volume in 2021.
The leaders in the growth of NFT trading activity were Ethereum and Ronin. The cumulative market share was 88%. Other protocols such as Polygon and Solana quickly caught on to this trend and expanded their NFT capabilities.
Recently, Electric Capital Developer reported that 1,000 DeFi developers managed more than $100 billion in locked assets in 2021. At the beginning of 2022, there were about 2,500 developers involved in the DeFi sector. According to The Block, trading volume on centralized and decentralized exchanges exceeded $15 trillion in a year. Of these, $14 trillion is accounted for by centralized platforms. Asset volume on major decentralized exchanges such as Uniswap and SushiSwap has grown five-fold since 2020, with DeFi token trading volume jumping 550% in 2021, according to a Chainalysis report.
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