It has been brewing for some time now, but Ethereum DeFi’s TVL has surpassed $80 billion. A monumental milestone for this nascent industry. Although there is more to decentralized finance than just Ethereum DeFi, it serves as a viable metric overall.
Ethereum DeFi TVL Keeps Rising
No one is really surprised to learn the total value locked in Ethereum DeFi keeps rising. Not only is the value of Ether going up, but the majority of DeFi assets do the same. Combined, they create a compounding effect to push the TVL higher every day. Now that $80 billion has been surpassed for the first time, the push to $100 billion can begin.
It is the first time this milestone is reached where Ethereum DeFi is concerned. Ever since surpassing $50 billion, the growth has been rather slow, which isn’t too surprising. It all comes down to how the markets evolve and influence the prices of whichever assets users are locking up across various Ethereum DeFi protocols.
Contrary to what some people may think, several dozen assets are used within the Ethereum DeFi ecosystem. As the values of these assets rise on their own accord, the TVL tends to increase spectacularly. Considering how the total value locked increased by over $5 billion in the past 36 hours, there is room for higher values to be recorded.
It is also worth noting there are many Ethereum DeFi projects than DeFiPulse may track at this time. New ventures come to market regularly, and their TVL is not always visible right away. Additionally, Ethereum is not the only blockchain with decentralized finance products and services. It is essential to keep tabs on the bigger picture, rather than focusing on one blockchain.
Interesting Growth Rates
When comparing the Ethereum DeFi projects individually, some interesting trends become apparent. Synthetix, a solution for synthesizing real-world assets, gains momentum rather rapidly. There is an increasing demand for synthetic assets lately, as they can play a great role in the future of decentralized finance.
Lending platforms, such as Maker, Aave, and Compound note a much smaller increase compared to other ventures. Uniswap, the biggest decentralized exchange in the world, saw its TVL increase by 4.43%, surpassing $7.5 billion. SushiSwap, on the other hand, lost 0.63% in total value locked, putting it over $2 billion behind Uniswap. Fascinating dynamics in this segment, indicating how tough it is to compete with the market leader.
Unfortunately, it would appear that various smaller Ethereum DeFi protocols note an outflow of TVL. Integral, 1Inch, and KEEP Network all saw their TVL decrease in the past 24 hours. Users and speculators keep shifting their funds around to explore more lucrative opportunities, which is only to be expected.