Ampleforth (AMPL), the non dilutive asset with an elastic supply that has been making headlines in the DeFi market, has become the second biggest DeFi project on CoinMarketCap.
Ampleforth overtakes Maker (MKR) and Compound (COMP), both of which have been seeing much discussion for launches, listings, development and integrations. AMPL’s current market cap stands at $621 million, while MKR and COMP follow with $512 million and $372 million respectively. Chainlink (LINK), which was recently added to the DeFi section on CoinMarketCap, tops the rankings with a market cap of $2.5 billion.
DeFi now exceeds $3.6 billion in total locked in value, adding $1.5 billion in July alone, but the DeFi market has been growing since the start of 2019. The addition of several new protocols, which offer liquidity rewards and yield farming incentives, has helped bring in new investors.
While DeFi itself has been growing, the dominance of specific assets has been subject to change. COMP’s launch in June breathed new life into DeFi, spurring an influx of investment. It quickly overtook MKR as the most valuable asset, but it has now been succeeded by LINK and AMPL.
CoinMarketCap briefly listed the Binance Coin (BNB) as the top DeFi asset, a move that was swiftly met with backlash from the cryptocommunity - Binance acquired CoinMarketCap in March 2020, and accusations of conflict of interest followed.
Ampleforth is “non-dilutive”, which means that a holder’s ownership of the network is maintained the same. This is done by achieving a price-supply equilibrium. When the asset’s price goes beyond the reference price of $1.06, the supply expands. When it drops below $0.96, the supply contracts. The team has said the unique nature of AMPL removes correlation with Bitcoin and in the long run could act as an alternative to central bank money.
