Posted 10 months ago | by Ben Armstrong

Crypto Accelerates to Become The Top Asset Of 2020 – DeFi Leads the Way

This year continues to witness crypto distinguish itself as a hot asset class. In the latest updates from the Bloomberg Galaxy Crypto Index, in 2020 alone, crypto market – which includes decentralized finance (DeFi) – has gone up by 66%, leaving gold behind by 20% to achieve the best performance of the year.

This result is mostly due to the rapid growth of Ethereum, which signs for around 30% of total crypto trading volumes since the year began.

In the unpredictable context of the continuing COVID-19 pandemic that leads to the fluctuation in all of stocks, bonds, commodities, indices, crypto and DeFi still maintain a positive momentum.

Together with the expansion of Ethereum, Bitcoin has played as a safe shelter for traders and investors to survive the pandemic financially. There is every reason to think that crypto will continue to perform well – even with some bumps in the road.

Crypto is a Great Asset

The economic fallout from the political reaction to COVID-19 is pushing many assets – like commercial real estate – much lower in value. But Bitcoin and other crypto have done well this year.

Based on volatility statistics, since the beginning of COVID-19, Bitcoin has outperformed the traditional stock market and become as goog as gold for holding value. It is also proved that Bitcoin and gold have established a closest correlation in the past 10 years.

Besides Ethereum and Bitcoin, DeFi is another star asset in 2020. One product that recently gaind a lot of attention and popularity is yield farming – in which traders can choose to lend or borrow one digital coin in exchange for other tokens.

Then, traders will basically act as liquidity providers to provide more funds to liquidity pools, where their tokens are locked up in decentralized finance projects, in return, they can earn some passive rewards.

DeFi is a Major Shift in Banking

DeFi allows for more liquidity in the market while restraining the supply of crypto. As DeFi Pulse reported, currently the DeFi sector is holding up to $9 billion of locked up crypto, and this number will likely grow – since more investors are joining the industry every single day.

It’s still too soon to say if this DeFi boom is a bubble – but it is likely to become a staple of the crypto space over the next few years.

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About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g Crypto Accelerates to Become The Top Asset Of 2020 – DeFi Leads the WayBen Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of BitBoyCrypto.com. Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at BitBoy@BitBoyCrypto.com or contact him on Twitter @BitBoy_Crypto.