The total value locked in DeFi has just hit $4 Billion since Tuesday when it was standing at $3 billion so let’s read about the latest reports on decentralized finance in our cryptocurrency news.
The value locked in Defi projects is growing rapidly and on Friday it hit $3.8 billion with an intent to grow further so it won’t be strange if it reaches $5 billion soon. Decentralized finance continued to grow at a rapid pace while the total value locked in the industry hit $4 billion. DeFi refers to non-custodial financial products such as crypto lending protocols and decentralized stablecoins and most of them live on Ethereum. The total value locked in Defi means the amount of money that is running through its smart contracts.
The industry is growing fast as on Tuesday the total value locked in Defi applications hit $3 billion as the DeFi pulse metrics showed. Three days later, it had increased by a third to $4 billion. At the speed at which DeFi is growing is increasing fast as it increased to $2 billion on July 7, two weeks before it hit $3 billion. Defi’s latest surge to $4 billion shows that it is now growing faster than ever. The three biggest DeFi protocols are Aave, Maker, and Compound and they are all lending protocols but Maker also operates Dai which is a decentralized stablecoin.
Maker is the biggest DEfi project by market cap as $832 million of crypto is locked in its contracts. There are about $601.million locked in Compound and close that amount in Aave. DeFi’s popularity increased dramatically over the past month when Compound released its governance token that is built on Ethereum and lets people lend and borrow crypto. After it went live, the price soared by more than 60% to earn the top spot on the DeFiMarketCap. The total DeFi market cap for tokens reached $3 billion in a few days.
Compound trades at $156 today, marking a drop of $0.73 in one day, Maker fell by 2.29% while Aave increased by 7.15 in the past 24-hours, trading at $0.3064. As per the reports recently, Two Consensys researchers conducted an independent report this week exploring the economic review of the ETH 2.0 Serenity, which is the upcoming shift to a proof-of-stake mechanism for Ethereum. The trend is amplified as Defi advances as well. The researchers cautioned that flash loans, derivatives, and other products, could have adverse implications for the entire network. MakerDAO was hit hard with a similar scenario. Ethereum fell 45% over two trading sessions and the lenders lost their funds which resulted in more than $4 million as buyers grabbed ETH for free.
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