The past few weeks have been rather interesting for all cryptocurrencies. First, prices of individual assets are on the rise, which results in the DeF TVl going up and surpassing $225 billion. An impressive development, confirming the demand for decentralized financial products and services hasn’t slowed down yet.
DeFi TVL Surpasses $227 Billion
Not too long ago, there was a question s to whether the DeFi TVl could surpass $100 billion. Although the Ethereum DeFi TVL has come close to that level a few times, there are other blockchains to consider as well. Numerous ecosystems provide benefits to developers and users through cheaper transactions, faster throughput, and better scalability. Maximizing profit potential is crucial in this industry.
Today, the combined total value locked across DeFi has surpassed $225 billion. Another intriguing milestone for this alternative finance industry. The current growth rate is rather impressive, although it remains to be seen how sustainable the momentum is. A new market dip will send this value spiraling down again very quickly. Cryptocurrencies remain volatile assets, and anything can happen in the blink of an eye.
As more DeFi protocols and services begin exploring cross-chain solutions, intriguing things are bound to happen. For example, there is more liquidity and a new group of users to tap into. Gaining a foothold will be tricky for obvious reasons, but it is far from impossible. After all, there would be such a substantial TVL increase in Q3 2021 without going cross-chain.
The big question is how much more money crypto users will pour into DeFi. Although yield farming and taking are still popular, the current returns are often unsustainable. Moreover, there are so many protocols to choose from and subsequent hacks, making it difficult to optimize one’s strategy. A killer app for DeFi has yet to come around, although that may happen sooner than people think.
Strong Weekly Gainers
The overall DeFi TVL growth is spectacular, mainly because it affects both small and large players. Industry leaders like Aave, Curve, MakerDAO, WBTC, and Convex Finance all noted weekly gains of over 11%. Although it is primarily thanks to Ethereum and other assets reporting a price increase, that is a good sign. Higher prices make people more eager to put money to use, as there is a potential compounding effect.
However, small projects such as Zabu Finance, Francium, and Inverse Finance saw a TVL increase by over 200%. Granted, such figures are easier to achieve when there is low liquidity, to begin with. However, it shows people are diversifying their DeFi approach, which is beneficial for the broader ecosystem. At this growth rate, reaching $250 billion in DeFi TVl is a matter of weeks.