The current bullish sentiments in the crypto market have been a major talking point in recent weeks. Bitcoin’s bullish trend has led to a ripple effect in the market’s decentralized finance (DeFi) sector.
Total Locked In Value hits $17 billion
The Total Locked in Value has witnessed an exponential increase in the past few days. According to data from DeFi Pulse, the total TVL hit a record high of $17 billion in today’s early hours. Looking at the data, over $2 billion was added to various DeFi projects in the past 48 hours. This was buoyed by the increase in the price of the leading DeFi smart contract network Ethereum.
MakerDao dominates the market with a total of $3.45 billion, locked in the protocol. This is followed by lending protocol Aave with $2.33 billion, and Compound (COMP) closes the top three with $2.24 billion in TVL.
Popular DEX, UniSwap, has witnessed a resurgence in recent weeks and is ranked fourth in TVL within the DeFi sector. It leads the way among DEXs with $2.12 billion ahead of rival SushiSwap, which has a TVL of $1.31 billion. Yearn. Finance is ranked 10th on the list of DeFi protocols based on TVL ($341 million). A lot is expected from the DeFi asset protocol amid recent Pickle Finance and Cover finance acquisitions in December.
More expected from DeFi In 2021
2020 was the breakout year for decentralized finance as it became a key sector in the blockchain industry. During this period, the interest gained saw the sector grow from a TVL of $5 billion in January to over $14 billion in December. There are huge expectations that 2021 could be the year in which it consolidates its gains from 2020. More blockchains are focusing on DeFi, and there are expected to be major products released in the first quarter of the year.
It should be noted that the major lure of the DeFi sector is the promise of high yield and risk-free investments. We should expect more protocols to spring up promising major gains for investors that stake their tokens in their platforms. Nevertheless, the DeFi bubble seems to show no signs of slowing down.