The total value of Ethereum is locked in DeFi now more than 5 Billion $. Ethereum touched all-time high again after 2018
DeFi is skyrocketing in 2020 and not showing any sign to come down or stop nearby at this point. DeFi business achieved another milestone yesterday that the total value of Ethereum is locked in. DeFi is crossed more than 5 billion $ first time in the DeFi business history. It is growing so much fast that today it is now near to 6 billion $. at this point, the total value of ETH in DeFi is 5.82billion $ on DeFiPulse.com
Ethereum was priced at $438 at the press time according to data from Coinmarketcap, as the world’s second-biggest cryptocurrency by market cap continues to enjoy the fruits of a pumping DeFi market. Eth Touched its highest price 445$ after 2018 due to Defi storm.
DeFi protocols require users known as liquidity providers to contribute digital assets such as ETH and Bitcoin as collateral, allowing other users to take loans or swap between tokens. The greater the value locked in DeFi, the more they’re able to be used at interest or exchange rates more favorable than traditional, centralized financial service providers.
The result is a cycle that attracts capital and users, offering each side a better deal overall thanks to reduced overhead made possible by automated smart contracts on Ethereum.
The latest run-up may have been impacted by several recent DeFi announcements. Crypto lending platform Aave announced the launch of distributed governance testing on Ethereum’s Ropsten testnet yesterday and has subsequently seen TVL more than 70% in less than a day, to more than $900 million.
Stablecoin swap platform
Curve Finance also launched the
CRV Token and CurveDAO for their play at decentralized governance, resulting in a TVL increase of a stunning 175% in just hours. yEarn.finance, one of the most cutting-edge experiments in decentralized governance and with close ties to Curve, saw the most substantial gains of all, rising almost 250% to lock up more than $450 million. It had less than $150 million the day before.
The DeFi mania not only has people taking bets in DeFi protocols, they’re also betting on where the industry goes next, thanks to crypto prediction markets.
Just a few weeks ago, a betting market on Polymarket sprang up, allowing users to bet on how high DeFi TVL would continue to rise in 2020. At the time, the split sat near $5 billion.
Since August 5, however, the odds have moved the expected TVL up to more than $7 billion, with a cap at $9 billion. And at the rate DeFi has been growing, that doesn’t seem all that far fetched before 2020 is over.
AUGUST 14, 2020
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