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DeFi

Q1 2021 DeFi Review: DeFi Booms as Bull Market Heats Up

Ryan Watkins, Roberto TalamasApr 22, 2021 ⋅ 43 min read

DeFi had an incredible start to the year.

Following Bitcoin’s run past all-time highs in December DeFi prices soared throughout January and February. In lockstep fundamentals skyrocketed with many metrics across DeFi growing multiples and reaching new all-time highs. Unsurprisingly higher prices lead to more DeFi usage as users look to trade, borrow, and farm more. In other words, speculation is good for DeFi.

While prices across the Ethereum DeFi sector stalled out in February, Binance Smart Chain’s (BSC) DeFi ecosystem took the mantle thereafter to much controversy. The rise of activity on BSC prompted significant debate over the tradeoffs between security and user experience, as well as the strength of Ethereum’s moat, if competing DeFi ecosystems could rise so fast.

In this report, we walk you through sector by sector, in what was one of the most jam-packed quarters in DeFi’s short history.

Decentralized Exchanges

Performance

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Ryan Watkins
RyanWatkins_

Ryan Watkins was a Senior Research Analyst at Messari. Previously, he worked at Moelis & Company as an Investment Banking Analyst where he worked on deals in the technology, telecom, and fintech sectors. Ryan graduated Magna Cum Laude from the Gabelli School of Business at Fordham University.

Roberto Talamas
RobertoTalamas

Roberto is the Head of Data Science at Messari. Prior to his current role Roberto worked as a researcher focusing on DeFi and DAO treasury management. Before joining Messari Roberto spent 4 years at BlackRock working as a quantitative developer focusing on building high performance Python tooling for research.

Mentioned Assets
Outline
  • Decentralized Exchanges
  • Q1 Developments
  • SushiSwap’s Rise?
  • Bancor Learns New Tricks
  • Lending
  • Q1 Developments
  • Going Forward
  • Stablecoins
  • Q1 Developments
  • Going Forward
  • Asset Management
  • Q1 Developments
  • Going Forward
  • Derivatives
  • Going Forward
  • Insurance
  • Q1 Developments
  • Going Forward
  • Closing Thoughts
Authors
Ryan Watkins
Ryan Watkins was a Senior Research Analyst at Messari. Previously, he worked at Moelis & Company as an Investment Banking Analyst where he worked on deals in the technology, telecom, and fintech sectors. Ryan graduated Magna Cum Laude from the Gabelli School of Business at Fordham University.
Roberto Talamas
Roberto is the Head of Data Science at Messari. Prior to his current role Roberto worked as a researcher focusing on DeFi and DAO treasury management. Before joining Messari Roberto spent 4 years at BlackRock working as a quantitative developer focusing on building high performance Python tooling for research.
Mentioned Assets