Although it has been brewing for some time now, the total DeFi TVL has surpassed $200 billion. Currently capped at $208.65 billion, the industry continues to grow and evolve. But, more importantly, projects exploring cross-chain capabilities are leading the pack, which is a welcome development.
DeFi TVL Goes Above $200 Billion
The ongoing growth of decentralized finance has been impressive to witness. Crypto enthusiasts continue to throw money at different protocols in a bid to earn more money. Whether it is staking, yield farming, or liquidity provision, everyone has many possible opportunities. Not all of them will offer the same returns, but that is par for the course in a competitive industry like DeFi.
Thankfully, it seems the recent market dip no longer hinders further growth. The current DeFi TVL across all tracked chains has hit $208.65 billion, which is a spectacular amount. There is more to decentralized finance than just Ethereum, even though most people may not look at alternative chains. That will change when cross-chain support becomes more outspoken, though.
Speaking of cross-chain support, it has proven beneficial to the DeFi TVL. The leading project by Total Value locked is Curve. It controls 7.54% of all of DeFi’s TVL, primarily thanks to being active on multiple blockchains. It resides on Ethereum, Polygon, Fantom, xDai, Arbitrum, and Avalanche. Its lead over AAVE, accessible through Avalanche, Ethereum, and Polygon, has shrunk to $250 million.
Other cross-chain projects to take note of include Lido, Yearn Finance, Sushiswap, AnySwap, Balancer, and Uniswap v3. It’s remarkable how SushiSwap has over twice the TVL of Uniswap on all chains combined. However, the UNI token has a higher market cap than SUSHI, creating a skewed correlation between the two. It will be interesting to see if going cross-chain can help Uniswap increase its TVL.
Wrapped Bitcoin Remains Popular
One of the more curious assets in DeFi is Wrapped Bitcoin or WBTC. Even though Bitcoin has a growing DeFi ecosystem of its own – through RSK – it seems more people favor tokenizing BTC on the Ethereum blockchain for DeFi purposes. The WBTC asset has many use cases, including DEX trading, DeFi farming, and so forth. The current Wrapped Bitcoin TVL is $11.72 billion, which is very impressive.
The bigger question is if and when WBTC will become a cross-chain asset. For now, it is only accessible through Ethereum. However, networks like Avalanche, Polygon, and others can benefit from supporting it. Whether any of them will do so is a different story. If there is no demand for the token on other chains, there is no immediate need to explore that option. However, it could send the DeFi TVL even higher.