The decentralized finance (DeFi) bubble continues to expand in size without presenting any signs of stopping soon. DeFi meteoric growth is mainly lifted by the introduction of reward incentives and yield farming. DeFi protocols provide new borrowing and lending solutions to its users by employing blockchain, smart contracts, and crypto-assets.
As per Defi Pulse data, the DeFi sector moved to fabricate rapid growth as the total value locked in the platforms achieved the $9.45 billion thresholds.
Analyzing the growth of the DeFi sphere, some experts compare it with ICO, initial coin offering, bubble of 2017, while others consider both the two eras entirely different. YouTube host Tone Vays passed the statement, “at least in the 2017 ICO bubble there was an effort made to come up with an idea to write a white paper on,” derivatives trader, financial analyst.
“In the world of yield farming, you don’t even need to do that, you just print money and give it away to those staking as they pray someone will buy it from them before the Ponzi ends.”
Winklevoss Consider DeFi Craze is More Real
In 2017, ICOs presented a similar pattern of growth as of today’s DeFi trend. Numerous ventures during the ICOs boom sold theoretical tokens in a crowd sale-type setting, amassing a great many dollars in speculations in practically no time. Ordinarily, these activities depended on almost no actual use case, and not many made sure about any similarity to administrative consistency before launch.
Commenting on the DeFi boom Cameron Winklevoss, co-founder of Gemini crypto exchange, said in a tweet, “DeFi is not the same as the 2017 ICO craze.”
“Back then, money was raised on s***coin white papers written in coffee shops. DeFi is already live and working in the wild. Billions of dollars are at work earning positive yield. This isn’t hypothetical vaporware, this is real.”