Amount of Ethereum (ETH) in DeFi Nears Record Highs

Decentralized Finance (DeFi) is a fast-growing part of the crypto sector. After the correction in the first half of this year, the amount of ethereum (ETH) contained in DeFi applications has grown again! That appears from dates by DeFi Pulse.

DeFi is a generic term for a range of new decentralized financial solutions built with blockchain technology. DeFi is revolutionizing the traditional world of finance with the creation of an open source and transparent financial ecosystem. For example, you can borrow, lend and trade money.

The vast majority of applications are built on Ethereum. For example, to lend ETH, the user must lock the ETH in such an application. The dollar value of all crypto that is locked in DeFi in this way is also called the total value locked (TVL). It fluctuates based on the ethereum price.

To see how popular DeFi is, you can also look at the amount of ETH contained in these contracts. As of April, there was nearly 8 million ETH in DeFi, valued at around $86 billion at the time. But a market-wide correction caused more ethereum to be pulled out of DeFi. Since then, however, the trend has been clearly upward.

Meanwhile, the amount of ether in DeFi is again approaching the peak that was reached earlier this year. At the time of writing, there is 7.8 million ETH in DeFi. So DeFi seems to be gaining popularity again after the uncertain times earlier this year.

The largest DeFi project is Aave, a lending platform. The project is on multiple blockchains and users have now pinned some 2.2 million ETH in it. Behind Aave we find Compound with 1.8 million ETH.

Read Also:  Dries Roelvink becomes a crypto legend thanks to Binance memes

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here