The total value locked in DeFi has hit $30 billion as positive sentiment surrounds the cryptocurrency market.
With $5.46 billion in TVL, MakerDAO’s Maker is currently the top project listed on DeFi’s data aggregator, meaning MakerDAO holds an 18.20% share. MakerDAO utilizes Ethereum-based collateralized debt positions (CDPs) to create Dai – a stable token pegged 1:1 with the U.S. dollar.
With a surge of interest and investment into decentralized finance platforms over the past year or so – largely due to increased regulation surrounding cryptocurrencies – more than 2 trillion dollars has been invested into this market as well as other similar projects such as stablecoins and security tokens.
Investors are continuing their bullish tendencies for blockchain-based investments despite recent volatility around Bitcoin’s price decline
DeFi’s Total Value Locked metric measures the dollar value of tokens locked in smart contracts for decentralized lending, decentralized exchanges, and other unique protocols. Uniswap (UNI), Curve Finance (CRV), Maker, and AAVE (AAVE) are the top five projects that contribute the most to TVL.
In addition to Maker, Aave’s TVL is estimated to be $4.03 billion, Compound’s at $3.68 billion, Uniswap at $3.34 billion, and Curve Finance at $3.18 billion. This equates to about 65.63% of the Total Value Locked at $19.69 billion.
Despite the fact that the majority of the DeFi projects have differing models and fundamentals, the ecosystem has grown exponentially in recent months. The TVL has steadily increased from $13.69 billion in November 2020 to $20 billion by December 2020.
SushiSwap, Synthetix, and BadgerDAO, which each have $2.65 billion locked up, are prominent players in the DeFi narrative.
There were 7,4 million Ethereum locked, an increase from the previous record set in December, and 45.8K Bitcoin locked.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
