As the cryptocurrency ecosystem is growing, so has the decentralized finance (DeFi) sector.
Data provided by DeFi Pulse shows that the total value locked in DeFi smart contracts or DApps have soared over $50 billion for the first time, indicating a continuous embrace of decentralized finance offerings ranging from lending, liquidity mining, and staking.
Per the exact figures, the total value locked (TVL) in DeFi at present is $51.42 billion, with over 87 projects growing in the industry. Of these, Compound takes the largest piece of the cake, with an 18.83% dominance to top $9.68 billion in total value locked. Maker, Aave, Uniwap, and Curve Finance all make up the top 5 DeFi projects with varying amounts of value locked into each application.
The DeFi ecosystem is one in which innovation is dynamic, and various projects have devised ways of giving end-users products that liberate them from the shackles of traditional finance. While the space still has a very long way to go before entering mainstream adoption, the current stride is a testament to people’s reception of innovative decentralized finance products.
Bitcoin, Ethereum, and DeFi
Bitcoin (BTC) and Ethereum (ETH) both play an active role in today’s DeFi ecosystem, evident by the total value of both cryptocurrencies locked in the diverse smart contracts. Of the $51 billion locked in DeFi overall, as much as 10.6 million Ethereum are locked and a total of 145.7K Bitcoin are locked in all.
While the amount of locked BTC and ETH are down from the highest peak recorded, the growing valuation of both digital currencies makes the locked amount increase in value. The growth of DeFi from $30 billion back in January to the current $51 billion is a positive trajectory DeFi supporters will see appreciate going forward.
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