The last few years in the crypto and blockchain industries saw a number of trends emerging. While some were bigger than others, most have passed due to different problems, such as the ICO trend, which disappeared due to a huge number of weak projects, scams, and the overall bearish wave that discouraged people from investing.
However, deeper in the crypto industry, decentralized finance (DeFi) started emerging, and in years that followed, it became bigger and bigger. Then came 2020, which truly became the year of DeFi — a set of financial tools that are based on decentralized networks and smart contracts.
DeFi Sees Exceptional Growth
DeFi is still a young sector of the crypto industry, with a total value locked (TVL) still being smaller than several coins, even if we exclude Bitcoin and Ethereum. Still, the DeFi sector saw tremendous growth in the last few months, going up by 440%.
For now, the DeFi sector is still tiny when compared to the broad crypto industry. Its market cap sits slightly above $7.2 billion according to DeFi Pulse, which is barely around 2.12% of the total crypto industry. Tether alone has more than that — over $9.9 billion, and so does every other coin that ranks above it. However, DeFi is definitely on the rise, and if the trend continues, it might become one of the biggest markets in the crypto industry very shortly.
Compound And Maker: The Stars of DeFi
According to DeFi Pulse, Compound and Maker have been the two leaders in the DeFi sector for a long time. Even now, Maker holds the top spot, with total value locked sitting at $1.23 billion.
Compound sits in the second spot, with $732.7 million at the time of writing, but even so, it represents Maker's greatest rival. The two are actually often much closer than this, and only a month and a half ago, Compound even managed to take over the #1 spot for a brief period, thanks to COMP liquidity mining launch.
The new way of distributing COMP, as well as providing incentives, caused the platform to grow rapidly, and become a new hit. It did not seem to have lasted, however, as Maker once again leads by quite a bit, but it was certainly an interesting strategy to try out.
Of course, there are those who believe that Compound will eventually overtake Maker, and that the second-largest project is playing the long game. But, there are also those who think that both of these will be outperformed by another player, maybe someone who is only just approaching now.
A New Emerging Player in DeFi
As many are aware, 2020 has been marked by the growth of DeFi, but also by greater financial instability caused by the COVID-19 pandemic. Many believe that the real financial issues are only starting, and that caused them to seek out solutions, which may have been the reason why so many people became interested in DeFi in the first place.
While older DeFi projects such as Maker and Compound may be in the lead right now, they might not remain there forever. Other platforms and projects may easily surpass them, given enough exposure.
Level01, specifically, holds great potential to bring great changes to the financial markets, and even transform it into something new and better.
The platform aims to bring decentralized trading to the massive derivatives market currently valued at around $542 billion. The platform utilizes FairSense, a predictive AI that currently has no equal in the derivatives market. Its algorithm helps to assess risk/reward projections by providing real-time, dynamic, and fair price value for all participants within the asset market.
By doing this, the platform levels the playing field for retail traders who, for the first time, have a chance to trade like professionals using their FairSense AI algorithm, which estimates the actual market value of the contracts they seek to trade. Now traders on the platform have a chance to profit from price movements of cryptocurrencies, especially during these uncertain times of pandemic induced panic and slumps.
The platform has its native token the LVX token currently only on offer on Digifinex through the LVX-USDT pairing. The token has been one of the better performers of the resurgent crypto market, with an ROI of 68.63% since getting listed on coinmarket.com less than a month ago.
LVX is currently trading $0.21 with a market cap of $31.7 million, making it one of the fastest-growing crypto coins.
Now, Level01 is well on its way of becoming highly popular, and the exploding DeFi sector is a perfect opportunity for it to gain greater exposure and offer an alternative to those who do not yet know about it.
After all, such things tend to happen to good quality projects when their market segments start going big. Since DeFi's time seems to have arrived, the top-quality projects like Level01 should be poised for massive growth.