What’s the current trend in DeFi

Golff Protocol
3 min readMar 4, 2021


In the end of the 2020, Bitcoin broke through the highest point of nearly 20,000 dollars in the previous bull market; only half a month later, on the second day of 2021, Bitcoin quickly exceeded 30,000 dollars; it took less than a week. Now, Bitcoin quickly rose to 40,000 dollars.

Under the leadership of Bitcoin, Ethereum also broke a record high. However, after that, the disk performance was abnormally weak, and a long period of adjustment was carried out around 30,000 points. Even the gray scale call of the “push hand” of this round of bull market was not working.

Is this the beginning of the bull market or it’s over ?

My answer is I don’t know. After all, any prediction can only be fulfilled after the market comes out. But if I have to say an opinion, then I think the bull market is still there, and it can even be said that the bull market has just begun.

The reason is that although Bitcoin broke through twice the historical high, other mainstream coins and altcoins in 2017 were far from the high point. There are many reasons for this. The first is that this bull market is driven by institutions rather than retail investors. The reason why institutions allocate Bitcoin is for asset allocation, and in terms of the size of institutions, it is not possible to cash out and leave the market in a short time. This is also the main reason why I think the bull market has not ended.

Secondly, when the bull market goes into a crazy state, because the leeks who rushed in are unwilling to take over the high-level Bitcoin, and choose to bet on the supplementary increase of other currencies, the situation should be 10,000 coins rising, unlike the current disk rotation, Bitcoin While the other currencies rose sharply, the price of other currencies rose slightly; and now the Bitcoin stagnated, and the DeFi skyrocketed in turn, this was caused by insufficient funds on the market.

The Defi industry released four phenomenal products last year, Dex represented by Uni, lending represented by Aave, income aggregator represented by YFI, and algorithmic stable currency represented by Basisi cash, which greatly stimulated the currency circle.

If the last round of bull market speculation was based on the concept of blockchain, what the blockchain can do for investors; then the DeFi speculation will undoubtedly bring real applications.

Looking back at the concept of DeFi, the entire rise of DeFi caused by the issuance of Compound currency in June last year. The rise of this scenario at first seemed to be triggered by the speculative demand for liquidity mining, so it was not much of people’s attention.

But in fact, from June last year to the present, after more than half a year of development, we can say without a doubt that DeFi is the third application scenario that has been proven and tested by the market after Ethereum. Because the various applications born in DeFi are not just all kinds of mining on the surface, but in essence, they have hit the various pain points in the current blockchain applications.

Now we can see that the product form in this field of DeFi is also gradually enriched. Previously, DeFi products were mainly dominated by lending platforms and order-thin decentralized exchanges. However, with the expansion of market size and user scale, DEX, aggregators, oracles, insurance, synthetic assets and other products have begun to be marketed It is recognized that even many traditional blockchain concepts can collide with DeFi. The composability of DeFi protocols has led to the birth of more products, which further enriches the gameplay of DeFi.

The market never treats innovators and brave participants. In terms of currency prices, many DeFi projects have entered the top 20 of the currency circle. LINK ranks 7th, UNI ranks 12th, and AAVE ranks 13th, surpassing EOS. . It can be seen that new fields are gaining the favor of capital, and those old and outdated public chains will gradually withdraw from the stage of history, and the future will be developed around the largest public chain of Ethereum.



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