What is the DeFi Leading Coin (DeFi Concept Coin)

08/10/2023 13:52 • Metaverse Matters • 101 views

What is the DeFi leading coin? According to official news, on August 18th, decentralized exchange platform coin DEFI, abbreviated as “DeFi leading coin,” was issued with a total supply of 10 million tokens. As of now, there are known DeFi projects like Maker and Compound, including AMPL, YAM, and SNX. The market value of these projects reached nearly $30 billion in June.

What is the DeFi leading coin? What concept does it emerge from? Its main value depends on whether its underlying technology is strong enough and its future development direction. What is the relationship between the DeFi leading coin and other mainstream cryptocurrencies?

DeFi Concept Coin

Editor’s note: This article is from the Wind and Fire Wheel community (ID: FHBT18), written by Peipei, and authorized to be reprinted by Odaily Star Daily.

Hello, everyone, I am Peipei. Recently, the focus of attention among friends in the cryptocurrency community has been on DeFi coins, especially some projects in the Ethereum ecosystem. In fact, it is somewhat similar to the trend of the UNI trading pair on Uniswap back then. UNI is considered to be a DeFi concept token since it is the hottest coin on Uniswap. However, DeFi has already entered a new stage now, which is a new concept, and not many people can participate since UNI.

Still, I think if there are any, there should still be a lot of people playing it, right? Of course, most investors probably don’t know what DeFi looks like yet and just want to understand its future development direction and application scenarios, but the risks involved are much greater than other things.

For example, I saw a tweet about DeFi yesterday, and the author found it well-written:

“There is something very interesting in my mind, and that is the degen concept. I personally like this kind of concept because I have been discussing various hotspots in this field with them, including some very useful technologies, technical principles, and whether these technologies can solve real-world financial needs… As for this question, let’s first take a look at the most popular application areas in DeFi:

1. Mining

As I mentioned in previous articles, degen is a decentralized computing platform primarily for developers, providing smart contracts that allow developers to profit without running complex programs. The second is mortgage lending or pledging assets, the third is insurance services, the fourth is issuing stablecoins as collateral, and the fifth is issuing protocols based on Ethereum stablecoins, which can achieve stability exchange functions, but currently cannot be used directly.

Here, it is worth mentioning that the degen concept itself is a small track, not a particularly large project. Although it does have a lot of speculative space, this space is relatively important. After all, the overall development of DeFi is as follows:

1. Market value ranking of degen

2. Number of highest market value projects

3. Types of projects/coins with high market value/percentage of market value

4. The total value of the top ten locked tokens exceeds $2 billion, indicating that there is still a considerable amount of funds in this field. Moreover, a large part of the market’s volume is also led by teams in this field, rather than a specific institution or fund.

Therefore, personally, I think this category is not very good, at least for now, its development speed is still very fast.

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What is the DeFi Leading Coin (DeFi Concept Coin)

DeFi Concept Coin

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