De-Fi Market Surpasses $1 Billion Market Cap
The crypto market looks great today, with the most important digital assets trading in the green.
Bitcoin is no exception and the most important coin out there is priced at $7,127.62.
It looks like the crypto market is struggling to recover following the massive drop in price that Bitcoin suffered back in March due to the coronavirus pandemic and more factors.
Now, the most important coin is seeing massive volatility ahead of the upcoming event which is scheduled for May, the halving.
Cryptos dedicated to DeFi hit $1 billion in market cap
The crypto assets that are dedicated to decentralized finance have collectively hit $1 billion in market cap.
Defi is designed to offer people an alternative to traditional banking services such as lending and borrowing by using platforms that are decentralized, lack control by middlemen and use smart contracts to automate transactions.
The DeFi space also has critics as well. We’ve reported not too long ago that Litecoin creator, Charlie Lee said that the DeFi platforms are centralized.
He cited an attack on the Ethereum-based bZx protocol. To reverse the damage from the attack, the bZx team decided to use an admin key to pause the network.
“This is why I don’t believe in DeFi. It’s the worst of both worlds. Most DeFi can be shut down by a centralized party, so it’s just decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization. So how is this better than what we have now?”
Binance said not too long ago that the DeFi movement is promising and going but there’s the need for more time to pass until it goes mainstream.
The term DeFi refers to platforms that have the ability to automize traditional financial services such as the following: borrowing and lending, insurance, and margin trading.
Ex-Google engineer, Charlie Lee is the creator of Litecoin and MD of the Litecoin Foundation. Previously Director of Engineering at Coinbase, Lee now focuses full-time on Litecoin. To enhance fungibility and privacy of LTC, integration of MimbleWimble has begun, however Lee has recently announced a crowdfunding launch to fund the development.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.