Considering the report from DefiLlama a crypto tracking platform. A little over $200 billion has been locked in decentralised finance (DeFi) protocol. Compared to the amount in June, this number has since doubled.
The total value locked (TVL) is the total dollar quality of the tokens that are held in smart contracts within the various DeFi protocols, such as trading and lending platforms. It is worthy of note that these numbers are not perfect as these trackers can double count the same coin.
According to DefiLlama, the total value locked (TVL) in Defi platforms across numerous blockchains has surpassed $200 billion. These protocols are rather many so it is a wide-ranging figure, consisting of large blockchains like Ethereum as well as new kids on the block like Solana, Avalanche and Fantom.
The majority of the dollar value is locked in projects on Ethereum. According to DefiLlama, the figure Is 140 billion which is a whopping 55% higher than the measure on DeFi Pulse. Coming behind the projects on Ethereum are projects on Binance Smart Chain (BSC) with $18.5 billion and Solana’s projects worth $11.7 billion.
Back in September 2020, Bloomberg stated that two-third of the cryptocurrency market is made up DeFi in terms of changes in price and the Defi collateral is worth up to $9 billion.
Maker DAO, a lending platform that only lends stablecoins is regarded as the first decentralised application(DApp) to obtain substantial use.
Last year, there was an increased interest in DeFi and this gave Ethereum a huge growing market due to the attraction of innovators. However, the growth of Ethereum’s strong market share has since stunted.
Ethereum has lost considerable market prominence due to the emergence of DeFi Protocols on other chains like Binance Smart Chain and the rest. It has decreased from 98% dominance in January to 68% in October 2020. During which its Total value locked has increased by four times.
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