The latest statistics and data from santiment shows and revealed that the collective market capitalization of all related tokens and assets dropped by 25%
While daily trading volumes went down 30.2%. The data also shows popular defi tokens like Sushi took heavy knocks after dropping by 50.9% during the week. Also making the list of heavy droppers is Uniswap’s new token (UNI) which lost 38.2% and the YFI which dropped by 31.3%.
Let's Recap about the previous topic:
Decentralised technology application in payment and financial system is now the latest uptrend now. Cryptocurrency token and Altcoins are more having valuable importance than cash. Many millionaire are now investing their money in Cryptos.
What is DeFi:
DeFi is a short term for " decentralized finance " an terminology umbrella for a variety of financial applications in blockchain or cryptocurrency geared towards disrupting and manipulative intermediaries.
DeFi was made through the inspiration from blockchain, the technology used in the digital cryptocurrency Bitcoin. Decentralized Financial Transactions which allows several entities to hold a copy of the history of transactions. It means it is not controlled by a single, or central source.
The idea and concepts of DeFi is somehow important because centralized systems and human controlled gatekeepers can limit the speed and safety of transactions while offering to it's users less direct control over their money. It is distinct in the way that, it expands the use of blockchain from simple value transfer to more complex financial use cases.
Cryptocurrency like Bitcoin Cash, Bitcoin and other digital traditional assets stand out from the legacy of digital payment methods, such as those owned and run by Visa and PayPal. In that way, they remove all Middlemen from transactions.
When you pay with your cards for coffee and other goods, a financial institutions or intermediary between you and the business, with control over the transaction, retaining the authority to stop and record the transaction in private ledger. With decentralized transaction like Bitcoin and Bitcoin Cash, those institutions are cut out of the picture.
Purchased directly, are not the only transaction or contract that was overseen by companies, financial institutions such as loan insurance and others. Cutting out middle men from all kinds of transactions is one of the primary advantage of DeFi.
Before it was commonly known as decentralized finance, the idea of DeFi was often called “open finance.”
This was launched 9 years ago way back 2011 of February and quickly growing resulting became the first example of Bitcoin product. While some proponents of cryptocurrencies argue that today criminal activities argue. Censorship make a resistance in some of the key features of all the Decentralised technology and criminal have played apart in adoption.
Adoption by criminal enterprises is evidence of the product/market fit of censorship-resistant technologies and an indicator of whether innovation will see usage in the non-criminal world. It would have not been possible to create the Silk Road without a truly effective censorship resistant payments method. The fact that Silk Road and other criminal enterprises are able to use bitcoin effectively is evidence cryptocurrencies are a useful and censorship resistant tool. As of now criminal activity online is encies, such as , also play a part.
