Market Analysis
DeFi Market and DEX Trading Volume
Total Value Locked (TVL): TVL grew from approximately $1 B in early 2020 to over $100 B by the end of 2021, demonstrating that DeFi is not just a passing trend but a key financial sector with substantial capital flows.
DEX Monthly Trading Volume: Decentralized exchanges have, at their peak, recorded monthly trading volumes in the trillions, and during crises in centralized exchanges, funds rapidly shift to DEXs.
Trends in the Launchpad Market
A variety of launchpad platforms (such as Binance Launchpad, Polkastarter, DAO Maker, and BSCPad) emerged, raising billions of dollars through IDOs and IEOs during 2021–2022.
However, traditional launchpads often suffer from issues such as opaque screening criteria, high staking requirements, and a proliferation of scam projects, which undermine investor trust and limit opportunities for smaller projects.
DAO and Community Governance
By the end of 2021, more than 4,000 DAOs existed, with leading protocols such as MakerDAO and Uniswap managing tens of billions of dollars in assets transparently through DAO governance.
Participation in these DAOs ranges from thousands to tens of thousands, with delegation and reward systems driving robust governance activities.
Liquidity Provision Demand and Liquidity Mining
The growth of AMM models (e.g., Uniswap, SushiSwap, PancakeSwap) has led investors to prefer participating in liquidity pools earning trading fees and token rewards instead of directly buying tokens.
Projects actively adopt liquidity mining incentive policies to attract initial liquidity providers and stimulate market activity.
Security and Rug Pull Risks
In 2021, rug pulls in the DeFi sector resulted in losses of several billions of dollars, underscoring the necessity of security measures such as ownership renunciation, liquidity lock‑ups, and extensive smart contract audits.
Investors place high trust in projects that implement these safeguards, making transparent on‑chain data crucial.
Meme Coin Market Data and Outlook
Recently, meme coins such as Doge, Pepe, and Shiba Inu have evolved in various forms and grown in scale and popularity.
Successful projects, including football team fan tokens, have demonstrated that meme coins can generate significant market interest and economic value.
Based on these developments, we believe that new meme tokens from fields such as the film and music industry, influencer endorsements, UNICEF, etc., could emerge. Diverge Loop is well-positioned to offer a transparent and equitable platform for the creation and trading of such meme tokens.
Overall Conclusion The DeFi, DAO, launchpad, and meme coin sectors have already grown into multi‑billion‑dollar markets. Openness, transparency, liquidity provision, rug pull prevention, and the emergence of new meme tokens are all critical factors for both investors and projects. Diverge Loop addresses these market demands by offering an innovative operational model that fuses DAO governance with DeFi.
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