- The DeFi sector has now reached $ 200 billion in total locked-in value (TVL), doubling the amount held since June.
- Ethereum leads with $ 140 billion TVL, but its dominancewe went from 98 percent to 68.5% because other networks adopt DeFi protocols.
The decentralized finance (DeFi) industry has now exceeded $ 200 billion in total locked-in value (TVL). The DeFiLlama tracking site indicates that this amount is double the amount held at the end of June. Chinese reporter Wu Blockchain tweeted;
Notably, TVL refers to the dollar value of tokens held in several protocols DeFi, whether it is loans, trading platforms or others. It should be noted that TVL figures are more of an estimate since trackers can count the same coins more than once.
DeFi TVL hits $ 200 billion mark
Projects on the Ethereum blockchain hold the majority of DeFi sector TVLs at $ 140 billion. Notably, the figure is 55% higher than that cited by DeFi Pulse . Binance Smart Chain (BSC) is the first finalist with $ 18.5 billion, followed by Solana with $ 11.7 billion. The other big blockchains are Terra, Avalanche and Fantom.
Additionally, DeFiLlama includes some scaling networks built on Ethereum, such as Polygon, Arbitrum and Optimism. These latter two networks have been launched recently and hold relatively smaller amounts of locked-in value.
Despite TVL's dominance of DeFi protocols, Ethereum has lost much of the control it previously held. With the rise of DeFi protocols on other chains, Ethereum's dominance is now 68.5%, up from 98% in January.Developers and users are likely to migrate to other less congested blockchains with lower costs. During this period, however, the network 's TVL increased fourfold.
Over the years Coverage of the relatively nascent DeFi field has increased as people seek new ways to earn income. Most of these protocols offer interest rates unbeatable by those of centralized financing offers (CeFi). Between May and September 2020, the capital invested in the ecosystem increased tenfold, from $ 950 million to $ 9.5 billion, according to DeFi Pulse.
From a other side
But even then, the ecosystem has not been completely immune from setbacks and criticism. PolyNetwork , for example, Toexperienced one of the biggest DeFi hacks to date, losing over $ 600 million. Several other er similar platforms have also been hacked for crypto worth millions. These are pNetwork and Neko Network which lost $ 12.7 million and $ 2 million respectively. Additionally, Arbitrum, a DeFi application on Ethereum, and the Solana network suffered significant downtime last month.
Nonetheless, ecosystems" The advantages prevailed over their deterrents. Even billionaires like Dawn Fitzpatrick, CEO of Soros Fund Management, have ventured into the same thing. Coinbase, the leading cryptocurrency exchange, planned to embark on a lending product before receiving a dampening effect from US regulators.