- A report has been released by CoinMarketCap and members of Spartan Labs.
- Since its start in 2018, the DeFi space has come a long way in a relatively short time span.
- The DeFi industry has now entered into a rebirth stage which will see a more stable way forward.
A comprehensive analysis report on the Decentralized Finance (DeFi) market has recently been released by members of Spartan Labs and the crypto market tracking website, CoinMarketCap.
The report, shared by Spartan Labs on their official Twitter page, takes a look at DeFi’s journey from its birth in 2018 up until now and also tries to identify what the future holds for the space. Members from Spartan Labs that helped compile the report include @0xavarek, @Defi_Maestro, and @GabrielGFoo.
According to the report, DeFi’s history started in the 2018 crypto winter, when applications such as Uniswap, Aave, and Maker DAO entered the market and led to the formation of the DeFi industry.
Shortly thereafter, Yield Farming began attracting the inflow of capital into the ecosystem, which ultimately kickstarted the DeFi Summer of 2020.
The next significant event in DeFi’s history is the introduction of vault strategies and aggregators. These protocols made it easier for users to enter into and interact with the broader DeFi ecosystem.
All of these technologies and protocols resulted in the on-chain total value locked (TVL) for DeFi surging to almost $250 billion. Unfortunately, this high amount of TVL did not last long.
The large-scale collapses of 3AC, Terra, and CeFi lenders, combined with geopolitical and macro headwinds, forced the DeFi market into a vicious crypto bear market. As a result, DeFi’s TVL rapidly collapsed as well.
Following the latest aftermath, the DeFi sector has entered into a sort of rebirth that has seen a more stable path forward emerge.
The report shows that protocols such as GMX and Synthetix.io bring more sustainable forms of tokenomics design and yield mechanisms, synthetic and derivative assets, and even opportunities in the regulatory space.