Lending Platforms Contribute the Most Total Value Locked to DeFi

Blocdesk Lending DeFi Total Value Locked 1INCH

For some time now, the total value locked in DeFi has continued to increase steadily. It is evident that lending protocols play a crucial role in this regard. Its TVL is now on the bring of hitting $6 billion,which would be a new all-time high. 

Lending Platforms Dominate DeFi

There are many possible reasons as to why people are drawn to decentralized finance. The DeFi industry provides access to decentralized products and services, allowing users to earn money in the process. There is never a guarantee for making money, though, as investing is never without risks in the cryptocurrency industry.

What makes DeFi so successful as a segment is the number of lending platforms and protocols. More specifically, the lending platforms are the reason for the increasing total value locked in DeFi today. A lot of people are interested in providing liquidity to earn assets in return. 


Source: DeFi Pulse

Looking at the rankings, Maker continues to cling to the number one spot. This situation remains unchanged from several months ago, albeit its total value locked now sits at $2.49 billion. This is well ahead of Compound at $1.59 billion, and Aave at $1.4 billion. All of these top lending platforms note a strong increase in TVL over the past 24 hours, primarily due to the ongoing Bitcoin price rise. 

Further down the list, other well-known platforms can be found. InstaDapp and C.R.E.A.M Finance would be expected higher in the rankings, but their total value locked is fairly low, all things considered. Even so, the likes of dYdX, ForTube, bZx, DDEX, and RAY have a lot more catching up to do. The latter platform is the only one on this list noting a negative change in TVL today. 

It is also worth noting DeFi Pulse doesn’t track all of the DeFi platforms on the market. It is focused on Ethereum-based projects, but there are many other offerings available to users. 

What About Other Segments?

As far as other DeFi segments are concerned, there are two that come close to the total value locked in lending platforms. First of all, there are the DEXes, or decentralized exchanges. Uniswap remains the king of the hill here, but SushiSwap is catching up quickly. Curve Finance is the third dog in the fight, whereas all other players are well behind the leaders. That is only to be expected, though, but things may change in the future. 

Source: DeFi Pulse

Both derivatives and payment solutions in the DeFi space don’t appear to get much attention. They are clearly outclassed by both lending and DEXes in this department. Again, this is not a full representation of what the DeFi ecosystem has to offer in general, but more an overview of what DeFi on Ethereum is all about.

Other than that, there is the “assets” category. Wrapped Bitcoin continues to hit a higher total value locked. This is primarily due to the value of the real Bitcoin rising, as well as overall demand for WBTC increasing. Harvest Finance and Yearn.finance complete the top three, but RenVM isn’t that far behind.