Decentralized finance, or DeFi, is becoming an increasingly significant presence in the cryptocurrency world. Dozens of projects compete for traction, slowly pushing the combined DeFi market cap to nearly $100 billion. A lot of these ventures note strong sentiment, although volatility remains an ever-present factor. 

DeFi Market Cap Approaches $100 Billion

It has been a wild year for the broader cryptocurrency industry. Despite Bitcoin and Ethereum noting all-time highs, most of the focus has shifted to decentralized finance. The majority of DeFi projects reside on the Ethereum blockchain, although other ecosystems compete for traction. There is also a growing focus on cross-chain support to unlock even more liquidity. 

As the industry matures and evolves, so does the DeFi market cap. With $100 billion well within reach, it is evident that this industry’s tokens and assets remain in very high demand. Although the DeFi market cap dipped from $83 billion to $70 billion a few weeks ago, the ongoing uptrend is still in place today. 

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BlocDesk DeFi Market cap
Source: CoinGecko

As the DeFi market cap gains more momentum, it also becomes crucial to keep tabs on the total value locked. Per CoinGecko, that TVL ratio has now reached $58.88 billion. It is well below the overall market cap of decentralized finance products. However, it is not abnormal to see a lower TVL compared to the market cap. The opposite result would be rather worrisome.

Reaching $100 billion is seemingly a matter of time at this rate. Whether that means DeFi projects are worth that much is a different matter. New ventures come to market nearly every other day, and rug pulls remain a pressing problem. The DeFi industry will need to mature and become more professional before it can be taken seriously by those not involved in cryptocurrencies.

Which Tokens Are Popular?

There are different ways to determine which DeFi tokens can prove worthwhile. Looking at just the price performance isn’t always the best idea. Instead, the individual market cap will often tell a bigger tale, which contributes to the overall DeFi market cap. It may yield projects with less “pump” potential and highlight the ventures with a proven track record.

Source: Coingecko

Uniswap’s UNI is currently in the lead, with a market cap of over $17.5 billion. A big lead over Chainlink’s LINK at $12.6 billion and LUNA at $8.27 billion. This latter project has noted a strong price gain over the past seven days, thus it remains unclear if holding onto that position is feasible. AAVE And SNX are a few billion behind, but any sudden price change can quickly disrupt this entire ranking.

All things considered, the decentralized finance space is in an exciting place right now. After overcoming some early backlash and security incidents, things seem to be proceeding smoothly. Although some projects still have to deal with code issues and potential security incidents, those will mainly be seen as growing pains. The coming years will be rather intriguing for DeFi.