Although the bitcoin price has been gradually increasing since the beginning of the year, 2020’s winner was undoubtedly the DeFi industry. Many tokens launched in this space soon caught the unstoppable interest of buyers and billions of dollars were raised.
DeFi volume was $500 million a year ago
According to research published by DeFi Pulse, the volume of the DeFi industry a year ago was only $500 million. As of September 2, 2020, it has been announced that the total value locked in DeFi has exceeded $9 billion. Investors who are tired of the stagnant journey in the bitcoin market and want to gain profits in active markets have found a wide playing field in the decentralized finance area.
Especially with the increase of the yield farming trend, the user can obtain high returns through these protocols.
Binance rivals decentralized finance
Binance, the world’s most popular cryptocurrency exchange, is also clearly interested in the DeFi space. This interest came not only as an alliance but also as a rival.
Binance announced that it is launching a brand new blockchain to compete with ethereum smart contracts and the DeFi space. Called Binance Smart Chain (BSC), the chain works with a new PoSA algorithm for Binance’s native token, BNB.
The announcement published on the official blog of the Stock Exchange included the following statements:
Five months since it was first unveiled in April 2020, the Binance Chain community has activated the Binance Smart Chain (BSC). Created to run parallel to Binance Chain, BSC enables the creation of smart contracts for tokens on the Binance-branded blockchain. It also introduces an all-new staking mechanism for BNB, one of the world’s top cryptocurrencies.
For detailed information, you can read the announcement on the Binance website.