Binance has released a new monthly report for August 2020 highlighting the success of DeFi in particular.
First, the August increase in Total Value Locked (TVL) on DeFi protocols, which exceeded $ 8 billion at the end of the month, is described as "parabolic".
DeFi's uptrend was nearly constant throughout the month, with an overall TVL increase of over 90%, and the Aave (LEND) protocol outperformed Maker (MKR) becoming the new DeFi protocol for locked funds.
Another major growth driver was Yearn.finance's native governance token, YFI, with a market capitalization that grew 10 times in a single month, from 127 million to more than $ 1.1 billion. According to the Binance report, this exponential growth is mainly due to limited supply, a strong and active community, a trusted development team, and innovative products.
The exchange also claims to have done its part by launching DeFi Composite Index Futures, tradable assets on the offering of perpetual futures with a margin of USDT.
In this regard, the report reveals that over 90% of traders continue to hold long positions in DeFi, despite recent volatility, highlighting bullish sentiment among investors.
This boom in DeFi has also led to an increase in trading volume on altcoin futures contracts, with a new high in early August at aggregate volume exceeding $ 20 billion.
On Binance, the daily record occurred on August 14, with more than $ 5.8 billion traded, while the average daily trading volume in altcoin futures was $ 3.4 billion.
Additionally, Binance Futures volume increased 79% compared to July, reaching a new monthly record of $ 195 billion, with an average daily volume of $ 6.3 billion.
A significant part of this growth in volume is due to altcoin contracts and, in particular, DeFi-related cryptocurrencies.
Altcoin volume dominance grew from 38% to 68% towards the end of the month, averaging 53% in August and 45% in July.
Finally, due to the continued issuance of dollars by the US Federal Reserve and its counterparts, the report reveals that investors are turning their attention to alternative assets such as cryptocurrencies and gold.
This capital inflow would also be the foundation of the new trend in the crypto world towards decentralized finance, as many DeFi projects also provide decentralized financial services, including high-yield interest income and low-interest loans.