MakerDAO, the third largest decentralized finance protocol (DeFi) by market value, broke a new record.

This Monday, July 27, he became the first to reach US $ 1 billion (R $ 5 billion) in total blocked value. The milestone means that MakerDAO users have this amount in the protocol for loan purposes.

MakerDAO now dominates the DeFi space. The protocol has almost 28% participation, according to DeFi Pulse.

MakerDAO

MakerDAO is followed by Compound and Synthetix, which have approximately US $ 764 million (R $ 4 billion) and US $ 423 million (R $ 2.2 billion) in total blocked value, respectively.

DeFi market grows exponentially

Overall, DeFi protocols now have more than $ 3.60 billion ($ 19 billion) in total blocked value. Surprisingly, it didn't take long for that value to be achieved.

In early July, the total blocked amount was US $ 2 billion (R $ 10 billion). For comparison, in February was US $ 1 billion (R $ 5 billion).

However, the blocked value is a metric with limitations. For example, it does not take specific parameters into account, such as trading volumes on decentralized exchanges (DEX).

An index called the Open Finance Index (OFI), developed by Matteo Leibowitz, explains these parameters to reflect the real image of the DeFi ecosystem.

OFI has also grown a lot – more than ten times – in the last month.

Evolution of finance or new bubble

Although it is the protocol with the most blocked value, MakerDAO is not the highest in market value. This title belongs to Chainlink (LINK), whose current value exceeds US $ 2.5 billion (R $ 13 billion).

For many people, DeFi can be a new evolution in crypto finance. They would allow the creation of a complete income and loan system, independent of the banking system.

On the other hand, many see this rise as a bubble. Like what happened in 2017 with Bitcoin and in 2018 with ICOs, the market would be on the rise without any justification.

Sam Bankman-Fried spoke on the subject. As CriptoFácil reported, the CEO of the exchange FTX stated that DeFi could be just a bubble, or the future of finance.

Read also: Bitcoin starts bullish movement after breaking 3-year low

Also read: Bitcoin is considered money by the US federal court

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