Recently, interesting data has emerged regarding the cryptocurrency space. Also, the data shows that big companies are transferring their money to GMX and many coins. Here are the details…
DeFi interest increased
Crypto-asset investment firms transferred $2.7 billion to decentralized finance (DeFi) projects in 2022, up 190 percent from 2021. On the other hand, investments in central finance (CeFi) projects fell 73 percent to $4.3 billion in the same time period. The staggering increase in DeFi funding came as the market shifted from bull to bear, despite funding amounts falling from $31.92 billion in 2021 to $18.25 billion in 2022.
According to a March 1 report by CoinGecko citing data from DefiLlama, the figures “potentially point to DeFi as the new high-growth area for the crypto industry.” The report says the drop in funding for CeFi could signal that the industry has “reached some degree of saturation.” The nearly three-fold increase in DeFi investment is also a staggering 65-fold increase from 2020 at the start of the last bull run.
Which projects did the funds flow into?
The largest DeFi fund in 2022, according to CoinGecko, is the $1 billion dollar Luna Foundation Guard (LFG) that took place in February 2022, about three months before the disastrous collapse of Terra Luna Classic (LUNC) and TerraClassicUSD (USTC) in May. It came from the LUNA token sale. Ethereum-based decentralized exchange (DEX) Uniswap and Ethereum staking protocol Lido Finance raised $164 million and $94 million, respectively.
Meanwhile, FTX and FTX US were the largest recipients of CeFi funding, raising $800 million in January, accounting for 18.6 percent of CeFi funding in 2022 alone. However cryptocoin.com As we reported, FTX collapsed and filed for bankruptcy just 10 months later. Other areas of investment include Blockchain infrastructure and Blockchain technology companies, which have raised $2.8 billion and $2.7 billion, respectively, and this trend has remained strong over the past five years, CoinGecko said.
Derivative platforms such as GMX, SNX draw attention
Henrik Andersson, chief investment officer at Australian-based wealth fund manager Apollo Crypto, says his firm has recently looked into four private sectors in crypto. The first is “NFTfi,” which he says is due to the combination of DeFi and NFTs. These are NFT projects that use DeFi to implement various trading strategies to generate passive income, or long-term or short-term trading NFT projects, among other things. Second and third are on-chain derivatives platforms and decentralized stablecoins, which Andersson believes emerged due to the collapse of FTX and recent regulatory action. Andersson uses the following expressions:
In light of the FTX debacle and regulatory movements, we have seen renewed interest in on-chain derivatives platforms such as GMX, SNX and LYRA. All seeing record volume/TVL. Decentralized stablecoins such as LUSD/LQTY have also benefited from the current regulatory environment.
Apollo Crypto invested in GMX, SNX, LQTY
The fourth sector Andersson mentioned was Ethereum-based layer-2 networks. “2023 will be the year for L2s and especially Ethereum L2s,” he said. The chief investment officer explained that layer-2 tokens like Optimism (OP) have been performing well recently, especially in light of the “Base” testnet launch created by Coinbase and powered by Optimism. GMX, SNX, LYRA, LQTY and OP are the investments of Apollo Crypto.
Zero-knowledge rollup tokens, liquid staking derivatives tokens, artificial intelligence (AI) tokens, DEX tokens offering perpetual futures contracts, “real return”, according to a tweet by crypto analyst Miles Deutscher last month on Feb. tokens, GambleFi tokens, decentralized stablecoins and Chinese coins will perform well in 2023 with heavy funding support. However, VC funding in the crypto space has fallen for the past three consecutive quarters amid tough market conditions.
According to the list below, the largest decentralized stablecoins are as follows:
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