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.

Related

Yields In the Eurozone Rise a Little as Attention Turns to ECB Minutes

Investors await the minutes from the European Central Bank meeting conducted in September. Seventy-five basis points were raised for each of the three primary interest rates set by the ECB. This took place at the specific policy meeting. Investors Await Clues on The Next Monetary Policy Tightening Additionally, the investors said that they expected future […]

After The Best First Quarter Since 1938, U.S. Stock Futures Fall

The Dow DJIA, +2.80%, increased by 825 points on Tuesday. The rise translates into a 2.8% gain. S&P 500 SPX, +3.06% had a 3.1% gain. A 3.3% increase was seen in the Nasdaq Composite COMP, +7.79%. Just What Is It That’s Propelling Markets Forward? Futures on stock indices have experienced some selling. A significant increase […]

The United States Government Has Called for Crypto Regulation

Experts and government officials have pinpointed the dangers that come with digital assets. U.S. authorities have warned that digital assets pose a security risk in a recent study. These dangers threaten the stability of the American financial system.  The Study Contends Unless “Proper Regulation” Is Put in Place On March 9, 2022, President Joe Biden […]

Possibility Of a Crypto and Financial Markets Collapse

The market may have seen the arrival of the black swan that nobody saw coming. Credit Suisse is a central global investment bank. There is a real possibility that the bank may collapse, which would lead to a catastrophic market meltdown.  The crypto and finance sectors triggered the conversations that led to this. What Is […]

A New Report Finds EU Sanctions Will Limit Russian Use of Europe’s Crypto Services

These events are occurring while the situation in Ukraine continues to worsen. Earlier this year, the EU restricted only “high-value” crypto-asset transactions to individuals and businesses in Russia. The current sanctions are likely to become more severe for the Russian Federation. EU Sanctions Over Ukraine May Target Russian Crypto Services The EU is getting ready […]