Total Value Locked in DeFi has Reached $20 Billion

The decentralized sector is booming thanks to price hike and institutional investments. The latest on-chain data shows the total value locked over decentralized platforms have reached $20 billion, all-time high value.

According to on-chain provider DeFi Pulse, the total value locked in DeFi has claimed the figure of $20 billion. TVL was hovering around $10 billion at the beginning of November 2020. It jumped from $10 billion to the current position of $20 billion in just a timeframe of two months. Decentralized exchanges, lending protocols, and decentralized derivatives platforms have captured a lot of capital from investors.

Maker is a Leader

Maker is a leading DeFi project with a TVL of more than $3.98 billion. The lending protocol Aave and Uniswap come after Maker with TVL figures of $2.64 billion and $2.47 billion, respectively. Famed researcher Owen Fernau believes that increased TVL means the use cases of Ethereum-based projects are multiplying. “TVL’s growth serves as a positive feedback loop: increases in value locked suggest increased utility of Ethereum,” Fernau said.

As of press time, Ethereum represents 35% of the total value locked in decentralized finance. In an actual case, the TVL of Ethereum is not growing, but it happens due to an increase in the second-largest coin’s price value. In October 2020, there are approximately 9.5 million ETH were present on DeFi sites, but now there is less than 7 million ETH locked in DeFi. A significant amount has also sent to the staking contract of Ethereum 2.0. ETH supply is necessary for the staking contract because without it staking consensus may not take practical shape.

At the current price tag, the value of staked Ethereum is equivalent to approximately $2.45 billion. These coins are locked in the staking contract for one year.

Following the leading Bitcoin, Ethereum is also moving up to submit new all-time high. At press time, Ethereum coin is exchanging hands at a price tag of $1,135 after an increase of 8.33% over the last 24-hours. Over the previous seven days, the price value is showing an increase of about 57%. The market cap of the second-biggest cryptocurrency stands at over $129 billion.

Bullish sentiments prevail in the whole cryptocurrency markets. In the list of significant cryptocurrencies, only XRP is down 1.71% in the previous 24-hours. Furthermore, XRP has also lost its fourth rank, according to CoinMarketCap.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Surveys: Investors Believe Bitcoin is one of the Biggest Bubbles

Two new studies show Bitcoin is included in the list of largest market bubbles. Investors think the top digital price would reduce in half over the year. Deutsche Bank’s survey Wealthy investors are mostly concerned from two entities, the US tech stocks and Bitcoin, because they are overpriced. Deutsche Bank’s survey takes views of wealthy […]

Don’t Invest in Bicoin If You Don’t Understand It

Bitcoin rapid price fluctuations suggest that people should think before pouring money into the cryptocurrency. Some financial experts believe one may lose money if one does not understand crypto assets before investing. On Friday, the price value of the high-flying crypto recorded $41,973. After reaching high, it then crashed by 15% on Monday, thus liquidating […]

Osprey Funds Launches Bitcoin Trust, known as OBTC

Similar to Grayscale’s Bitcoin Trust, Osprey has launched its product known as OBTC. Grayscale’s competitor is now in the market, but we will see whether it become successful in catching the attention of wealthy investors or not. Competitor of Grayscale OBTC is an over-the-counter trust, which will function similarly to GBTC. According to the company, […]

Cumulative Bitcoin Mining Revenue Surpasses $20 Billion

On-chain metrics show miners have generated a lot of revenue from the ongoing Bitcoin rally- from $20,000 to above $40,000. The diversity in the mining infrastructure is a good thing for the network’s security. Record Increase in the Past Two Years Analytics firm Glassnode revealed over Twitter that “cumulative” miner revenue has crossed above $20 […]

Don't Miss Out On Bitcoin Storm!

#1 Bitcoin and Cryptocurrency Price Prediction Software / Trading Robot

Sign Up

Try Crypto Engine With a Trusted Broker