DeFi is growing faster than ever
The decentralized finance economy has grown massively this year and as of the time of writing, the industry is now worth $9.017 billion, according to the on-chain data resource DeFi Pulse. Total Value Locked [TVL] essentially means the amount of money running through its smart contracts.
The industry has grown incredibly quickly with its TVL figures surging by more than 119% over the course of just one month.
With a large portion of DeFi-based applications, tokens, and services hosted on the Ethereum network, its native token, ETH locked in it has also surged to a new all-time high of 5.229 million. This, in turn, has reignited bullish projections in terms of ETH’s price which stood at $404, at the time of writing.
Race for first place in DeFi’s TVL intensifies
Recently ousting Maker for the position of the biggest DeFi protocol was Aave [which was previously known as Ethlend] with a dominance of 18.98% over the last 24-hours as its TVL [USD] reached $1.71 billion. One of the significant factors of Aave lending protocol outpacing previous front runners was its LEND token which soared more than 4500% since the beginning of the year.
Adding to the surging popularity was the recent development of the issuance of a license to Aave’s U.K. business entity, Aave Limited by the Electronic Money Institution.
Meanwhile, Maker settled for the second-biggest position with $1.43 billion locked in smart contracts. Trailing not far behind was Curve protocol with a figure of $1.27 billion.
This was followed by Yearn.Finance at $956.3 million. Interestingly while it neared the coveted league of $1 billion TVL protocols, its native token, YFI recently hit a new all-time high following its listing on Aave’s platform and a hint at a partnership with the crypto-derivative platform, FTX.
Referring to the collaboration news, Founder of the project, Andre Cronje tweeted,