DeFi accelerates blockchains and NFTs explode, reports claim

October, or precisely “Uptober,” came gracefully as the crypto market recovered from all the efforts of Chinese and other regulatory bodies’ negative comments and actions. The overall market hit a market capitalization of $2.32 trillion, and decentralized Finance (DeFi) has massively contributed to it.

DeFi protocols grew so high that the total value locked (TVL) increased more than 20% in just eight days. According to the data from Dappradar, it rose from $113.5 billion on September 28 to $137 billion on October 6.

The banking giant Bank of America (BoA) has also recently expressed its views on DeFi and Non-Fungible Tokens (NFTs) by saying that they have a ton of potential. BoI said in a report published on October 4 that crypto can solve various issues, and the assets should be looked beyond the crypto king Bitcoin.

The report further explained by comparing tokenization with the initial days of the Internet. 

Johnny Kyu, the CEO of KuCoin, the famous crypto exchange platform, also believes that DeFi has so much potential. He says that as more people are taking an interest in technology, it can be taken as an alternative to the traditional banking system. 

As per a report by Dappradar, the Total Value Locked (TVL) has increased by 53.45% quarter-on-quarter in Q3 this year.

What’s next in DeFi?

Due to its smart contract capability, the DeFi ecosystem started on the Ethereum blockchain. Since then, many other blockchain networks have tried their hands on smart contract features through layer-1 or layer-2 solutions in their networks. Binance Smart Chain, Solana, Avalanche, Terra, and Polygon are by far the most notable ones. 

The major contribution to the continuous growth of these networks is the high gas fees of the Ethereum blockchain. After the London hard fork, the EIP-1599 proposal led to the burning of ETH tokens. This was done to make it “ultrasound money” for reducing the fees and improving scalability.