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Decentralized Finance (DeFi) took the world by storm in 2020, recording a 14x growth that year. Now, DeFi is a billion-dollar industry valued at $81.85 billion and experts say we can expect even more growth in the coming year. One veteran crypto investor, Matthew Roszak believes that the DeFi sector will see 10x growth to become an $800 billion industry thanks to increasing mainstream crypto adoption, the global chase for yield, and increased inflation. The fast-growing market is still in its early stages, offering an advantage to first movers like WonderFi Technologies Inc., Riot Blockchain, Voyager Digital, Coinbase Global, and DeFi Technologies, which are all positioned to benefit from the projected growth of the DeFi industry.
WonderFi Technologies Inc. (NEO:WNDR) is focused on bringing DeFi to the masses by simplifying user interaction with decentralized finance and reducing complexities that are preventing the mainstream adoption of DeFi. The company was co-founded by Ben Samaroo, Cong Ly and Kartik Bajaj, whose previous cryptocurrency startup First Coin Capital sold to Galaxy Digital in 2018 in connection with its public listing on the TSXV, and Dean Sutton, Co-Founder of LQwD Financial Corp. and a founding advisor to Argo Blockchain.
In June, WonderFi Technologies Inc. raised approximately $17.7 million in a financing round led by Canaccord Genuity and PI Financial Corp. and included several key institutional and strategic investors. The company also underwent a name change after its strategic investor Kevin O’Leary’s nickname Mr Wonderful.
Apart from gaining former crypto skeptic O’Leary as an investor, WonderFi Technologies also garnered investments from Argo Blockchain, BIGG Digital, MindMed co-founder Leonard Latchman, social media influencer Josh Richards and crypto billionaire and FTX founder Sam Bankman-Fried.
“We’ve now brought in a really big name in crypto… a crypto icon who built FTX, which is one of the largest crypto exchanges in the world and the most rechnologially advanced, as well. He is now an investor, so we are super excited about that and it’s a very strategic move for us,” said WonderFi CEO Ben Samaroo in an interview.
Crypto Stock Growth as DeFi Industry Expands
Riot Blockchain, a leading bitcoin mining company in the US, released its financial results for the second quarter of 2021, recording a 1,540% increase in mining revenue to $31.5 million compared to $1.9 million for Q2 2020. Riot attributed the revenue growth to the company’s resolute focus on bitcoin mining as well as the acquisition of Whinstone US, which has allowed the company to expand its operations and services. In addition to increased revenue, the company has also increased the total number of bitcoin mined from 491 BTC in Q1 2021 to 675 BTC in Q2 2021 bringing the total number of BTC from its mining operations to 2,687 (unaudited) as of July 31, 2021.
Voyager Digital has become one of the fastest-growing publicly traded cryptocurrency platforms and it is easy to see why. Voyager has been involved in a series of acquisitions and deals including an agreement to jointly operate a brokerage platform with Market Rebellion. The company recently released an update on the agreement, stating that the two companies will provide online brokerage services for equities, options, and futures. The two companies will invest 50% each into the deal after FINRA approved the 50% investment by Market Rebellion. Voyager also partnered with fintech and integrated electronic payment solutions provider, Usio Inc. to enable merchants to accept major cryptocurrencies as a payment method.
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According to a recent letter to shareholders, Coinbase Global recorded strong growth in Q2 2021 recording a 44% increase in monthly transacting users from Q1 2021. The platform recorded 8.8 monthly transacting users and 68 million verified members. Coinbase also has more than 9000 institutions and more than 160,000 ecosystem partners. On the revenue front, Coinbase reported a net income of $1.6 billion and an Adjusted EBITDA of $1.1 billion. As part of its future outlook, Coinbase plans to introduce more assets to the platform, provide its products to international markets and integrate with third-party interfaces and self-custody to tap into the growing use cases including DeFi, NFTs, and DAOs.
Valour Inc., a wholly-owned subsidiary of DeFi Technologies (NEO:DEFI) (OTC:DEFTF) continues to drive value for DeFi Technologies after recording an increase of more than 1400% in assets since the beginning of 2021. Valour’s ETPs surpassed I billion Swedish Krona in assets under management bringing its total AUM to US$143.5 m as of August 18, 2021. Some of the assets that have recorded significant growth include Bitcoin Zero, which has grown its assets by 1055% since January.
WonderFi Technologies Inc. is one of the companies positioned to benefit from the explosive growth of the DeFi industry.
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