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Bloomberg: The DeFi field is being dominated by top projects, and competitiveness has declined significantly since the collapse of FTX

Bloomberg: The DeFi field is being dominated by top projects, and competitiveness has declined significantly since the collapse of FTX

CointimeCointime2023/11/17 07:09
By:Cointime

According to data compiled by crypto risk modeling company Gauntlet, the DeFi sector is still dominated by a few participants and has yet to recover from the FTX collapse a year ago. Most of the funds in the DeFi category are concentrated in a few top projects.

Gauntlet uses the Herfindahl-Hirschman Index as a measure of market concentration and competition. According to this index, competition between DeFi exchanges is the most intense, with the top four exchanges accounting for about 54% of the total market share. Other categories, including decentralized derivative exchanges, DeFi lending, and liquidity mining, have little competition. The top four liquidity mining projects in this category occupy about 90% of the market share.

In addition, according to DeFiLlama data, as of the time of publication, DeFi TVL is about $46 billion, compared to a peak of about $179 billion two years ago; Messari data shows that despite recent market rebounds, only about 30 DeFi projects have generated revenue of more than $1 million in the past 180 days overall. (Bloomberg)

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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