DeFi picks up the pace as alternate blockchains and NFTs boom

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On the back of the incredible crypto market recovery and the boom in NFT markets, the DeFi market has grown 18% in October.

As September ended, the cryptocurrency markets recovered from the so-called “September curse” handsomely to hit a market capitalization of $2.32 trillion. The decentralized finance (DeFi) market has been an integral part of this growth. The total value locked (TVL) in DeFi protocols grew more than 20%, from $113.5 billion on Sept. 28 to hit $137 billion on Oct. 6, as per data from Dappradar.

Even the Bank of America (BoA) — a global banking giant — has revealed its bullish outlook on DeFi and nonfungible tokens (NFTs). In an Oct. 4 report by BofA Securities — a subsidiary of BoA — the firm evaluated the scope of crypto assets beyond “just bitcoin.”

(Bitcoin’s strength) can execute automated programs (smart“Tokens such as Ether, Cardano, Solana, and others with blockchains that can do more than securely record payments contracts) such as making a payment after an event. his is Decentralized Finance (DeFi) where smart contracts automate manual processes of traditional finance”, the report states.

It also compared tokenization to the early days of the internet and spoke of the decentralization and tokenization of many aspects of finance as it currently exists. 

Cointelegraph discussed the rapid expansion of the DeFi markets with Johnny Kyu, the CEO of crypto exchange KuCoin. He explained:

“The popularity of the DeFi market is growing as more people are starting to understand that a smart contract can be a worthy alternative to a traditional loan or bank deposit. The amount of funds locked in DeFi reflects market adoption among private investors who are moving their money from the traditional financial system to the decentralized industry.”