A number of decentralized financing protocols saw volatility around $ 1 billion. Dollars in 2020, which briefly made some of them unicorns in the crypto space. Although the 2020 figures can be compared to the number of projects that emerged as unicorns during the first coin offering period in 2017, Gemini was a co-founder Said Cameron Winklevoss in September that DeFi protocols have more resilience:
“Back then, money was collected on shitcoin white papers written in a coffee shop. DeFi already lives and works in nature. Billions of dollars are working to make a positive return. This is not hypothetical vaporware, that’s right.”
This platform pays users interest on locked funds in return for loans. Aave was a DeFi project to reach 1 billion. $ In market value in 2020, but its value has dipped below crypto unicorn status a few times after the news of a $ 6 million. Flash utilization. The protocol’s own LEND token – which has been migrated to a new AAVE token – increased after Aave received an electronic banking license from the United Kingdom Financial Conduct Authority in August.
DeFi protocols revealed its second version earlier this month, which reportedly will make improvements to flash loans and the use of collateral for loan reconciliation.
Long for finance
That market value of YFI reached $ 1 billion in August, before reaching a full-time high on 12 September. Although many consider YFI to be one of the best tokens in DeFi, it has not regained its crypto unicorn status since September. At the time of publication, the token’s market value was approximately $ 750 million.
Interest in the Yearn.finance DeFi platform has increased since it launched its native token, YFI, in July. The interest rate aggregation platform provides liquidity through smart contracts and offers interest to liquidity providers.
Synthetix is a decentralized exchange built on the Ethereum blockchain through a series of smart contracts. However, Synthetix does not offer trading between cryptocurrencies such as tokens and stack coins, but rather between “Synths” created using another asset as collateral.
This DeFi platform passed $ 1 billion. in total value locked in August. Its Synthetix Network Token (SNX) achieved significant gains this year after reaching its full-time high of $ 7.74 on September 11, accumulating more than 400% from the price in early 2020.
Harvest Finance may have had one of the shortest stints as a crypto unicorn this year. The DeFi protocol raised as much as 1 billion. In total value locked before a hacker was able to launch an attack on Harvest’s liquidity basins and drained 24 million. News of the exploitation caused the total value of the protocol to be locked loss nearly half a billion dollars in 24 hours.
Harvest Finance works in the same way as Yearn and is an automated return management system that allows users to earn interest after delivering certain cryptocurrencies for lending.
Outside of DeFi projects, blockchain analytics firm Chainalysis has expanded rapidly in 2020, raise its total valuation to more than 1 billion. $ after a round of financing of 100 million. $ last month. The company develops investigative tools that enable companies, governments and law enforcement agencies to monitor blockchain transactions and track suspected illegal activities.
There were also other crypto unicorns that appeared in 2020. With Bitcoin (BTC) rises to more than $23,000 for the first time in history and Ether (ETH) that passed $ 600 for the first time in two years, this year has been pretty bullish for major digital assets and new DeFi projects.
Filecoin was one of the fastest blockchains to win and lose crypto unicorn status this year. After the network launched its mainnet on October 15, Filecoins FIL token up 118% to reach a market coverage of just over DKK 1 billion. $ before the price dropped almost 80%. FIL’s market value did not return to the same level until a month later and is currently at $ 1.3 billion.
Polkadot followed the same pattern as Filecoin, with its DOT token rapidly growing to a market value of more than $ 5 billion. Blockchain has been live since May as a permitted “proof of authority” network, however launched its mainnet at the end of July. Polkadot does not compete directly with the Ethereum network and allows multiple blockchain networks to exist on its protocols.