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When the believers of Decentralized Finance (DeFi) wake up today, they can see the long-awaited scene of Coingecko’s top 100 tokens by market capitalization: the native tokens of the popular DeFi platforms Synthetix and Aave have entered the top 20 by market capitalization. The incident was hailed by DeFi observers as a “great repricing”. As of press time, Aave is ranked 17th in market capitalization, and Synthetix’s ranking has fallen back to 22.
DeFi investors, users, and builders have long believed that, compared to other cryptocurrency projects, DeFi’s user base continues to grow, the cash flow brought by protocol fees, and the first layer of the “zombie chain” scattered in the market’s forefront Compared with the Internet, the level of DeFi activity has soared, and the DeFi field is seriously underestimated.
The market value of Aave and Synthetix has broken through the top 20, surpassing Tezos and Tron.
Remember the “DeF great repricing” that I was nagging for months? Yes, it is happening.
Soon, the top ten will be ETH, BTC and DeFi.
-Eric.eth (econoar) January 16, 2021
If there are any signs in the past week, it is that the overall market seems to have finally realized this incoordination. SNX and AAVE rose by 40% and 74% respectively this week, each with a market value of more than $2.3 billion, surpassing Tezos and Tron.
According to Coingecko’s data, AAVE’s market capitalization is higher than TRX and XTZ.
I have been insisting on this view since the second half of 2019: the top DeFi cryptocurrencies will gradually surpass these established first-tier network tokens and become the top 20 tokens by market value.
-Arthur on Tech (Arthur_0x) January 16, 2021
Prior to this, both projects have made good progress. Aave is working on a proposal that, if approved by the governance layer, it will change the security module valued at $370 million, making it possible to create a new insurance product line, and Synthetix is supported by the launch of the second-layer expansion solution.
In addition, some people believe that with the arrival of the new “alt szn”, this may just be the beginning of DeFi assets.
In fact, even if no new funds enter the DeFi field, we see that this repricing is being corrected by the market, because funds flow to the only vertical area of the crypto market, showing signs of product market fit.
However, this will be a bumpy road, because without volatility, there can be no room for significant upside.
—JoséMaria Macedo (ZeMariaMacedo) September 9, 2020
In an interview with Cointelegraph, Delphi Digital partner José Macedo said: “Although this is an important milestone, it is only the beginning of the trend we have been talking about.” In terms of the direction of this trend, the total asset size of consumer finance It is 3.2 trillion US dollars. We believe that the value support of DeFi is financing, just like the Internet’s investment in data; DeFi transforms financial primitives into “money Lego” and creates an open ecosystem to realize the permissionless innovation of the entire stack. “
In the long run, some achievements may be achieved, such as being in the top 20 in the cryptocurrency rankings, but this may seem trivial, but Macedo warns that the road to such a lofty goal is not necessarily smooth:
Although the overall direction is clear, it is worth remembering that if there is no volatility, there is no room for a substantial upward move. There is no doubt that we will face a bumpy road, and supervision is imminent.