Decentralized finance is one of the fastest-growing sectors of the crypto ecosystem currently with a total locked value of $74.21 billion according to DeFi Pulse. As this sector expands, we are seeing an increase in adoption and financing. Investors are betting on the future of centralized finance with increasing investment in startups such as Cega, which raised $4.3 million in a seed funding round.
Meanwhile, Singaporean DeFi company, Cake DeFi Ventures has set aside a $100M venture arm to support startups in fintech, Web 3, and gaming.
These investments in the DeFi space are bound to drive greater adoption of decentralized finance, which will be beneficial for DeFi plays like WonderFi Technologies Inc. (NEO:WNDR) (OTCPK:WONDF), Riot Blockchain (NASDAQ:RIOT), BIGG Digital Assets Inc. (CSE:BIGG) (OTCQX:BBKCF), Voyager Digital Ltd. (TSX:VOYG) (OTCQX:VYGVF), and DeFi Technologies, Inc. (NEO:DEFI) (OTCPK:DEFTF).
WonderFi Technologies Inc. (NEO:WNDR) (OTC:WONDF) is a leading technology company with the mission of creating better access to digital assets through compliant centralized and decentralized platforms. The company's multi-pronged business strategy includes a high-growth consumer finance app, which will serve as a trusted gateway to the new financial system, and a digital asset portfolio consisting of leading DeFi and crypto assets.
On March 24, WonderFi closed the acquisition of Bitbuy Technologies, one of the leading crypto marketplaces in North America serving over 375,000 users, with over $4.4 billion transacted. Last year, Bitbuy was named as Canada's first approved crypto marketplace and was ranked #9 in the Deloitte Technology Fast 50 after experiencing a 3.379% increase in revenue between 2017 and 2020, making it the highest-ranking crypto asset trading platform among the Fast 50 winners.
According to Ben Samaroo, CEO of WonderFi, "The integration of WonderFi and Bitbuy is a huge step forward in our mission of democratizing finance through easy and secure access to DeFi and crypto. A licensed marketplace serves as a crucial gateway to the digital asset economy, and facilitates a robust end-to-end, unified client experience."
Bitbuy's acquisition will accelerate WonderFi's product development capabilities and scaling potential by adding more than 80 employees, including engineers and other personnel.
Earlier this month, WonderFi reported a rapid increase in users on its ecosystem following the acquisitions of BitBuy and Sun Machine. The company expects to close BitBuy's acquisition in Q1 2022, bringing in 389,000 registered users to the WonderFi ecosystem.
WonderFi has also seen significant growth in its recently launched app, which launched on January 25, 2022. Since then, the company has seen 25,600 unique visits, with the daily signups recording a 255% week-over-week increase in the last week of February.
The company's WonderFi Interactive with the Go Big! Game franchise also brought an additional 200,000+ users on iOS and Android. With this growth in users on the WonderFi ecosystem, the company expects its users to be more valuable as it introduces more features and products. Currently, the estimated lifetime value of each user on a platform like BitBuy is $800.
Companies Bolster their Investments in Crypto and DeFi
Riot Blockchain (NASDAQ:RIOT) produced 436 Bitcoin according to its February production and operation update. The company also made progress on the first phase of the deployment of its 200 MW immersion-cooled bitcoin mining tanks, bringing the company's total to more than 10,000 S19j Pro Antminers deployed in immersion cooling tanks. Following this progress, the company will monitor its immersion performance data over the next 60 days. Riot Blockchain also continued the expansion of its 400 MW project despite disruption from the severe winter storms in Texas.
BIGG Digital Assets Inc. (CSE:BIGG) (OTCQX:BBKCF) acquired 185 parcels of virtual real estate on Decentraland through its portfolio company, TerraZero. The company intends to build a premiere entertainment destination to provide immersive virtual experiences through virtual concerts, film screenings, shopping, cultural, and educational experiences. Following the purchase, Mr. Carl Fravel, a technology executive, Decentraland entrepreneur, and district leader joined BIGG as a strategic advisor to help with the metaverse strategy and execution.
Voyager Digital Ltd. (TSX: VOYG) (OTCQX: VYGVF) made a strategic investment in CryptoTrader.Tax (CoinLedger), shortly after the company announced a partnership between the two companies which introduces free tax tools for Voyager's customers for the 2021 tax year. The investment from Voyager reinforces the shared vision the companies have in supporting the cryptocurrency ecosystem. Through the investment, Voyager is helping CoinLedger introduce its tax filing capabilities to make it easier for users to track their cryptocurrency taxes. Valour Inc., a wholly-owned subsidiary of DeFi Technologies, Inc. (NEO:DEFI) (OTC:DEFTF) announced that the company had $1,037,000 assets under management, after a week of trading Valour Terra (LUNA) ETP. LUNA was listed on the Nordic Growth Market (NGM) stock exchange on February 28, 2022. The ETP tracks LUNA, the native token of the Terra Protocol – a rapidly expanding network of DApps with a market capitalization of US$36.1 billion.
Decentralized finance has been described as the future of finance, and companies and investors are betting on this future. Companies like WonderFi are leading the movement towards making decentralized finance accessible to all.