Is #DeFi Blockchain’s Killer dApp?

Over the years, talk about what blockchain’s best use case is has turned from gaming to cloud computing, and over toward more obscure possibilities.

As time goes by, however, it’s become apparent that money is what blockchain does best, especially when that money, and the way it’s invested, is decentralized. #DeFi, short for decentralized finance, has emerged as blockchain’s leading use case, but that should come as no surprise.

Examples of decentralized finance have abounded for years, but what has been missing all along was the short and sweet hashtag reference. Decentralized exchanges, projects like OmiseGo, and platforms such as Cardano all contribute to the overarching spread of #DeFi.

The significant difference now, as compared to a year or two ago, is that the #DeFi ecosystem is much more clearly defined. A large part of that definition results from the decentralized loan space being spearheaded by projects like Compound, MakerDAO, and Dharma.

Some centralized players are bringing light to the space too. Nexo, Genesis Capital, and Celsius Network are raking in big bucks doing the crypto lending thing, which, though not decentralized, locks more value into the crypto-financial ecosystem.

While crypto loans have been the linchpin of #DeFi up to now, we’re witnessing the broadening beginning of what feels like a true financial renaissance. Yesterday, MyCrypto.com reported a new milestone reached with 2.2 million ETH locked into the #DeFi space. At current ETH prices, that’s just shy of $400 million secured into decentralized lending and derivatives dApps.

Market Update

No big changes since our last report, with Bitcoin (along with other major blue chip assets) remaining range-bound.

After BTC/USD swept range highs a few days ago and gave the market a moment to dream, it’s now appearing weighed down and headed back for range lows based on the 4hr.

The good news is that alts vs. BTC seem to be enjoying the subtle swinging, as is evidenced by their slow climb against crypto’s leading asset. We’re leaving room in our short-term outlook for BTC to surprise us by moving bullishly, in which case we’d look to reduce our altcoin exposure.