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Hidden new opportunities in the 100 billion DeFi market: who is the next "new mining favorite"?



With the new wave of DeFi, centralized cryptocurrency exchanges are doing their best to launch innovative products and compete for traffic, and new currency mining is undoubtedly one of the most noteworthy products at present. The new coin mining strategy not only integrates the advantages of IEO and DeFi liquidity mining, but also reduces the threshold and complexity for users to participate in DeFi, greatly simplifies the mining process, and increases the demand and value of exchange platform coins, which can be said to serve multiple purposes.

How big can the DeFi market grow? Although it is difficult to give an accurate answer to this question, one thing is clear - it must be bigger than you think!

On April 28, the total lock-up volume of DeFi exceeded 100 billion US dollars for the first time; just three days later, this indicator reached 110 billion US dollars on May 2, and broke through 120 billion US dollars a week later. This Monday, May 10, the total lock-up volume of DeFi broke through the 130 billion mark, setting a record high.

At the time of writing, the DeFi lock-up volume dropped slightly to US$122.81 billion, and the net lock-up volume was US$89.08 billion (as shown in the figure below). Of course, it seems difficult to understand this volume concept purely from the perspective of numbers, but if you put this number into traditional finance, you may have a more intuitive feeling-according to Infinite Market Cap data, the current total lock-up volume of DeFi The scale has surpassed the market value of financial giants Goldman Sachs Group ($120.41 billion) and China Life Insurance ($120.23 billion), and is approaching HSBC ($125.47 billion) and Softbank ($140.48 billion).

Huaan Securities: The digital RMB industry investment space may reach 100 billion: On November 7, Xia Yingtao, a senior analyst in the computer industry of Huaan Securities, said on the program: The entire digital RMB is also a market of more than 100 billion yuan. There are several types in this The company is relatively more likely. The first category is financial equipment companies. These companies are relatively very successful and have obviously benefited from the entire upgrading process. The second type of companies are banking, IT, and information construction companies, such as traditional banks and IT companies, which benefit greatly. The third aspect is digital institutions, which may also be based on this new payment scenario of digital renminbi, and will also benefit to a certain extent. There is also a fourth category that we just introduced. In essence, the digital renminbi will also use some encryption algorithms to make some updates and based on cryptography to ensure a safe transaction process. Therefore, some security encryption companies will also benefit from the promotion and construction of the digital renminbi as a whole. The fifth category is enterprises with downstream application scenarios, such as campus informatization enterprises, other catering informatization enterprises, etc. These enterprises will also participate in the entire upgrading and transformation process, and certain new projects and orders will also be generated. Therefore, based on the fact that the digital renminbi may be a market of more than 100 billion yuan, our main focus is on these five types of corporate investment opportunities. (East Fortune Network) [2021/11/7 6:36:29]

After Bitcoin fell below $30,000, the market value of digital currency wiped out nearly 100 billion U.S. dollars in one day: According to news on July 21, within 24 hours, Bitcoin fell by more than 5%, since hitting a record high of nearly $65,000 in mid-April , its price has plummeted by more than 50%; Ethereum fell more than 6%, and XRP fell nearly 9%. Since 2021, Bitcoin has risen by 1.87%, and Ethereum and XRP have risen by about 135% for the whole year. According to data from CoinMarketCap, as of 6:29 a.m. ET on July 20, the entire digital currency market has lost about $89 billion in market value within 24 hours. Vijay Ayyar, director of business development at digital currency exchange Luno, said that $30,000 may be important for Bitcoin. After crossing this point, the sell-off may intensify and test the $22,000 to $24,000 level. (CoinDesk)[2021/7/21 1:06:22]

Many people may not know that about a year ago, the total lock-up volume of DeFi was less than 700 million US dollars, which means that the market size has increased by a hundred times in one year. Frankly speaking, it is surprising that the DeFi market has exploded with such a huge potential in a short period of time, but it is also reasonable. As a new financial model, DeFi is extremely scalable and composable. Open and transparent, low cost, low default, high efficiency, intelligence, automation, etc. With the support of these functions, we have seen the rapid expansion of "DeFi tentacles" to lending, synthetic assets, NFT, income farming, and liquidity mining This is also one of the main reasons for the rapid growth of the decentralized financial industry.

Everbright Bank's "Sunshine Exchange e-Chain" business scale exceeded 100 billion: A few days ago, Everbright Bank further integrated high-quality resources on the chain and launched the "Sunshine Exchange e-Chain" comprehensive service blockchain platform. As of April 10, 2020 On October 1, the business scale of Everbright Bank's "Sunshine Exchange e-Blockchain" reached 101.6 billion yuan, and the cumulative number of business transactions on the chain was 1477, ranking first among peers on the chain. (Shenzhen News Network) [2020/4/14]

From the DeFi boom in 2019-2020 to the NFT boom in 2020-2021, recently, the market seems to be looking for an engine to trigger the next round of market growth. Many people in the industry have discovered that "new currency mining" is likely to start this Engine spark plugs. Some people may think that NFT "fired" overnight, but this is not the case. The concept of NFT has actually appeared as early as 2017. After nearly four years of dormancy, it has become the blockbuster we see today— —The same is true for "new currency mining". Some leading cryptocurrency exchanges have launched this service as early as 2020, and with the rapid growth of the decentralized financial market, "new currency mining" has become this service now. key components of the field.

The concept of "new currency mining" is not difficult to understand. It is a new mining model that combines IEO and liquidity mining. Users only need to provide the corresponding digital assets without investing too much money to grab funds, and only need to pledge The assets specified by the exchange can participate in the new currency mining project and obtain corresponding returns.

The total market value of cryptocurrencies exceeded 200 billion U.S. dollars: According to Jinse Finance data, the total market value of cryptocurrencies in the world is about 208.567 billion U.S. dollars. Bitcoin ranks first in the cryptocurrency market, with a market value of approximately US$133.3 billion, accounting for 63.91% of the current market value; Ethereum ranks second, with a market value of approximately US$18.6 billion, accounting for 8.93% of the market value; Ripple The currency ranks third, with a total market value of about 8.7 billion US dollars, accounting for 4.17% of the market value. [2020/4/8]

The new currency mining method is essentially the form of IEO + airdrop of new DeFi tokens. IEO is to obtain new currency at one time by mortgaging the platform currency, and new currency mining is also to mortgage the platform currency (or other designated tokens), but to obtain The new coins are distributed slowly. In fact, although major cryptocurrency exchanges claimed to launch new products at low prices in the IEO era, the pricing power is still in the hands of exchanges and project parties. Most users only have the opportunity to participate in crowdfunding but do not have the right to negotiate tokens. The "new currency mining" model has changed this situation, and it has become a breakthrough for exchanges to mine new users and explore new business models.

Who will be the most noteworthy "driver" on the new currency mining track?

In fact, leading cryptocurrency exchanges including KuCoin, Huobi, Binance, and OKEx all launched the "new currency mining" business in September 2020. In fact, the decentralized financial market was in a stage of rapid growth at that time, and the total lock-up volume of DeFi exceeded the milestone of 10 billion US dollars for the first time in the history of that month. The number of cryptocurrency exchanges on this new track is gradually increasing, so who is the most noteworthy "driver" on this track?

In 2016, the amount involved in digital currency pyramid schemes reached hundreds of billions: According to China Business News, according to incomplete statistics, since 2016, there have been more than 180 pyramid scheme fraud cases under the guise of digital currency publicized on Judgment Documents Network, and the total number of cases involved The amount is as high as hundreds of billions of yuan, and 90% of the cases belong to various pyramid selling activities through the development of offline. Through combing, it is found that among the criminal cases involving digital currency, 90% are MLM cases using digital currency for hierarchical marketing, and hundreds of people involved in the case have been held criminally responsible by the court for organizing or leading pyramid selling activities. [2018/1/23]

Next, let us compare the new currency mining business of some major cryptocurrency exchanges, and we may find some bright spots.

Judging from the comparison of the new coin mining business of the above-mentioned top cryptocurrency exchanges, the most unique way of playing is the KuCoin platform. First of all, compared to other trading platforms’ new currency mining mode of “locking the warehouse and issuing mining rewards for one day”, KuCoin’s BurningDrop reward will issue most of the new currency rewards on the day the lockup starts (most project rewards This is equivalent to the difference between paying the whole month's salary on the first day of work and the daily salary. Participating in KuCoin's new coin mining can get more benefits in advance. Another noteworthy aspect of KuCoin’s new currency mining is that they have added a burning acceleration link, that is, after staking assets, you can increase your mining computing power coefficient (acceleration coefficient) by burning another encrypted asset, so as to obtain More SGDs. Therefore, KuCoin’s BurningDrop is usually divided into two stages: the staking period and the burning acceleration period. During the staking period, you can obtain an initial computing power after locking assets. In the burning accelerator, you can increase your computing power coefficient by burning certain designated tokens. , and finally distribute new tokens according to the final computing power coefficient. If you want to know the specific burning rules of KuCoin, you can go to KuCoin official website to learn more.

The entry of "new currency mining" triggers the next step of wealth creation effect

From liquidity mining to new currency mining, there is no doubt that the entry of cryptocurrency exchanges has opened windows for more ordinary users to explore the world of decentralized finance.

In fact, ordinary users still encounter many problems if they want to profit from liquidity mining in the DeFi field. First of all, the expensive Gas fees and congested network discourage many retail investors; secondly, the transaction operation is too cumbersome and prone to mistakes, and the unfriendly user interface makes the transfer transaction not safe enough. With the entry of leading cryptocurrency exchanges such as KuCoin, Binance, and Huobi, it has played a positive role in promoting ordinary users, new currency projects, and the entire DeFi market. In terms of security, almost all operations of users can be completed inside the trading platform when mining new coins, and there is no need to perform too many operations on the chain, so sufficient protection can be obtained.

Not only that, in the past DeFi market, many liquidity mining projects often ran away, or the founders of the projects disappeared, which made it easy for investors to lose funds. In contrast, new currency mining projects launched on cryptocurrency exchanges will basically pass the platform screening, coupled with the "endorsement" of the exchange, so many new currency mining projects are of relatively high quality, such as the recently launched BurningDrop They are all IDO projects on DAO Maker, and each project has good development potential. Among them, HORD’s opening price increased by 25 times, TCP’s opening price increased by 24 times, and LOCG’s opening price increased by 18 times. The effect of creating wealth is obvious.

"New Coin Mining" Helps Exchange Platform Coins Rise

From the previous analysis, we can see that if you want to mine new coins on a leading cryptocurrency exchange, most of the pledged assets that users can choose are exchange platform coins (carbon chain value Note: KuCoin can choose to pledge There are relatively many assets, including USDT, Bitcoin and Ethereum), which means that users who want to participate in new currency mining need to hold the platform currency, which in turn boosts the value of the exchange platform currency from the side.

We compare the platform tokens of the "big four" top exchanges (as shown in the table below, data source: Coingecko, data extraction time on May 9, 2021), and we may also see a clue:


With the waves of DeFi booming, centralized cryptocurrency exchanges are doing their best to launch innovative products and compete for traffic, and new currency mining is undoubtedly one of the most noteworthy products at present. The new coin mining strategy not only integrates the advantages of IEO and DeFi liquidity mining, but also reduces the threshold and complexity for users to participate in DeFi, greatly simplifies the mining process, and increases the demand and value of exchange platform coins, which can be said to serve multiple purposes.

With the gradual maturity of the new currency mining business, more and more users are bound to participate in the DeFi market through cryptocurrency exchanges. From the current point of view, mainstream exchanges including KuCoin, Binance, Huobi, etc. are ready for the next wave of upsurge. Who can become the leader in this field? Let us wait and see


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