When the price of Bitcoin rises sharply, all other currencies tend to benefit as well. Although the uptrend is slower for Ethereum and consorts, there is still visible growth. In the DeFi sector, the total value locked now sits well above $16 billion.
A New DeFi Total Value Locked Milestone
It has seemingly gone quiet in the DeFi circles as of late. Even though some assets are still prominent, most people keep an eye on Bitcoin. After all, a higher BTC value will – typically speaking – yield a higher Ethereum price. So far, both currencies are not moving up similarly, as ETH lags by a significant margin.
Even so, the overall value of DeFi platforms and their total value locked is on the rise. Not entirely surprising, as these assets are all gaining value passively. With over $16 billion in total value locked, a new milestone is in place. Keeping this momentum going will be a different matter altogether.
This move is significant for the DeFi industry. In recent weeks, the total value locked has hovered between #13 billion and $15 billion. Those figures are still more than respectable yet leave some enthusiasts wanting more. It now appears these enthusiasts are getting what they want, assuming this trend can remain in place.
It is interesting to note how Maker is losing a bit of its DeFi dominance factor. A healthy development, as this industry needs a bit more competition. For now, Maker still has over $2.87 billion in TVL, which represents 17.84% of the total. Clinging to that top spot will pose some challenges.
Wrapped Bitcoin Is Rising Quickly
The ongoing Bitcoin price increase benefits one DeFi asset in particular: Wrapped Bitcoin. This Ethereum-based version of BTC is a staple in decentralized finance. It is also a bridge for existing Bitcoiners looking to enter the DeFi scene. All of this results in Wrapped Bitcoin’s total value locked surpassing $2.66 billion.
The third project on the list is Compound, but Aave is not that far off. Both projects have very similar amounts of total value locked. Uniswap remains in fifth place and notes the smallest 24-hour gain of the entire top 10. It will be interesting to see how these rankings evolve in the coming two weeks.
All in all, the DeFi industry is still very relevant to a lot of people. The launch of Ethereum 2.0 Phase 0 doesn’t seem to diminish these different projects’ total value. That said, there are other blockchains capable of providing decentralized finance services. Even Bitcoin has its own ecosystem, courtesy of Rootstock.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org