DeFi Market Cap Just Reached $45 Billion With Token Prices Rising

The DeFi market cap just reached $45 billion while the token price continued growing rapidly and now makes up 4.6% of the market cap so let’s read more in our latest altcoin news.

The DeFi market cap just reached $45 billion and there are even more crypto enthusiasts that believe there’s more room for growth. The total market capitalization of all decentralized finance tokens surpassed $45 billion according to the data by CoinGecko. Market capitalization is the asset’s current price multiplied by the total supply which is a metric that compared multiple coins with varying supplies. In other words, it means that all of the tokens combined are now worth over $45 billion at press time. Coingecko tweeted:

 “DeFi total market cap. 2020 was at $2 billion. 2021 now at $43 billion.”

The DeFi ecosystem increased by another $2 billion in regards to its market cap in one day. during the same time period, the total daily trading volume of DeFi tokens surpassed $12 billion. Over the past week, most tokens saw strong price surges which contributed to the total market cap growth. Uniswap and Aave were the ones with the most notable results as they both increased by 40% in the past week according to CoinGecko. Other coins increased faster like DODO and Finance doubling in the past week.

Ethereum’s decentralized finance sector exploded in 2020 and surged from $700 million locked in DeFi smart contracts to $15 billion on December 31^st. This is the amount of crypto that was used in various DeFi protocols for lending or borrowing. It looks like the growth is expected to surge this year too. In January, the total value locked on Defi platforms increased by $11 billion and reached $26.2 billion today as per the data on Defi pulse. However, Coingecko’s data shows the defi tokens’ combined price amounts to 4.6% of the total market cap of all cryptocurrencies.

DeFi total market cap
2020 was at $2 billion
2021 now at $43 billion

👉 https://t.co/7yZOe3FgNe pic.twitter.com/HKisdgiLkh

— CoinGecko (@coingecko) January 24, 2021

Considering the nature of DeFi, some users are skeptical towards the ecosystem but they acknowledge that there’s a lot of room for this “bubble” to grow. Twitter user CryptoMessiah said:

 “Defi dominance… Look how early we are… 4.5% I refuse to believe that this is anywhere close to the top of the bubble.”