Ethereum DeFi Surges Past $20 Billion In Total Value Locked

BlocDesk ConsenSys: How High Yielding DeFi Opportunities can Threaten Ethereum 2.0 Ethereum DeFi

It was a matter of time until the Total Value Locked in Ethereum DeFi would surpass $20 billion. Following the recent ETH price increase, the TVL now sits just below $21 billion. Unsurprisingly, the “biggest platforms” note substantial influxes of fresh capital. 

Ethereum DeFi Approaches $21 Billion

When the value of Ethereum goes up, it is a good sign for all DeFi platforms on this blockchain. As ETH is often used as collateral or liquidity, the rising Ether value will prop up the total value locked in DeFi. Thanks to this recent surge, things look a bit different in the world of decentralized finance.

To be more specific, the top platforms all remain in place. However, Uniswap has now officially taken the third sport from Compound. A surprising development, but that was somewhat to be expected. Uniswap keeps making headlines in terms of overall liquidity and remains the top DEX on Ethereum today. 


BlocDesk Ethereum DeFi TVL
Source: DeFi Pulse

As Maker and Aave remain in first and second place, things are bound to get interesting. Uniswap’s gap to Aave is relatively small, thanks to a 7.41% increase in TVL. Aave’s growth is less outspoken, at just 3.75%. Maker, the top dog of Ethereum DeFi, notes a TVL increase of 6.91%.

Unsurprisingly, there are also platforms losing TVL. InstaDapp, for instance, loses 7.01% in liquidity overnight. mStable also dropped slightly, due to a 2.62% drop. Kyber and Value DeFi both note a decrease of over 13%, which is rather substantial. However, RAY – a lending platform –  has lost nearly half of its TVL overnight. Whether this is due to a rug pull or something else remains uncertain. 

What Comes Next?

Following this significant improvement, one has to wonder what the future brings for Ethereum DeFi. Its high transaction costs remain an issue. Moving funds in and out of DeFi platforms, DEXes, and dApps remain too costly. It is for this reason that some platforms migrate to different blockchains.

BlocDesk DeFi Changes
Source: DeFi Pulse

Furthermore, one has to wonder if this growth would have happened without the Ethereum price rise. Ethereum DeFi has been relatively quiet in recent weeks, and its growth potential is in question. Although these numbers look healthy, it seems very little has changed in reality.

Until the next generation of decentralized finance platforms comes to market, the growth potential will remain relatively limited. If and when we will see new “innovation” remains to be determined. As more users explore Ethereum 2.0 staking, the DeFi aspect may begin losing some traction.