It has been brewing for some time now, yet the total value locked of Ethereum DeFi has finally surpassed $55 billion. A significant growth curve, primarily made possible thanks to recent price increases. It is also intriguing to note how Compound is the only project with a TVL of over $11 billion.
Ethereum DeFi Growth Continues
Although no one expected anything else, it is still good to see the TVL of Ethereum DeFi increase. The month of March has not been kind to this ecosystem, as it appeared the TVL would remain below $47 billion for some time to come. The momentum picked up again in late March and continues unabated today.
More specifically, Ethereum DeFi has a total value locked of $55.76 billion today. That is a significant increase, considering the TVL dipped below $50 billion again just a few days ago. As prices of Ethereum and other assets move up, it is only normal to see the TVL do the same. The exact correlation between these two events will always be a bit murky, yet no one can deny it.
Even though the total value locked in Ethereum DeFi is rising, the same can’t be said for all of the individual projects. More specifically, Compound manages to increase its lead over Maker and Uniswap. However, a 2,.21% increase is not spectacular, despite noting $11.07 billion in TVL. Compound remains well ahead of Maker – $8.8 billion – and Uniswap $6.09 billion. As these gaps widen, it will become more difficult for new projects to gain any traction.
Two projects manage to note a hefty increase in TVL. Both Polygon and Flexa have a daily growth of over 58%. Intriguingly, both projects focus on the payments space, making them rivals of sorts. Flexa has the higher TVL of the two and may breach $1 billion shortly. For Polygon, there is still a lot of room for improvement, albeit achieving any traction will be incredibly difficult under the current circumstances.
Several Projects Go Downhill
It is only normal that some Ethereum DeFi projects note a decrease in TVL at this time. ForTube is the biggest name in this ranking, seeing its TVL decrease by 15.46%, down to $7.7 million. Primitive, one of the many derivatives platforms, is not faring much better. Its 9.2% TVL decrease puts it at $750.6k locked funds, not looking too promising. Turning the ship around will prove difficult.
As the Ethereum DeFi TVL continues to grow, there are now 12 projects with over $1 billion in Total Value Locked. An exciting development, as this list used to be a lot more elusive for most projects. However, the launch of initiatives like Aave, SushiSwap, Synthetix, and Balancer has made the decentralized finance industry more appealing and accessible.
The next question is how high the TVL of DeFi on Ethereum can go. Many people expected $50 billion to be the limit, but today, reaching $60 billion or even $75 billion may not seem that crazy. It will all depend on how sustainable the recent price increase for all significant assets proves to be.