The so-called decentralized finance (DeFi) market has grown enormously since last summer. According to data from DeFiLlama is now more than $200 billion locked in this cryptocurrency sector.
The size of the DeFi market is often indicated by the total value locked (TVL), which is the total value stuck in the smart contracts of all DeFi projects. The Fillama data shows that this TVL has now reached a whopping $205.5 billion.
Ethereum (ETH) remains by far the largest platform for DeFi projects, but the market share on this blockchain has decreased. With $140.9 billion TVL, Ethereum now owns about 68.5% of the total. In January it was still 98.2%. Despite this, the amount has multiplied seven times since then.
Due to the soaring transaction costs on Ethereum this year, a number of users and developers have switched to competitors. The hope is that this problem of so-called “gas fees” will be solved with the arrival of Ethereum 2.0 and the switch to proof of stake (PoS).
After Ethereum, Binance Smart Chain (BSC) is the largest blockchain for DeFi with $18.6 billion TVL, about 9% of the total. Binance announced yesterday that it is investing a whopping $1 billion in BSC. This may have caused the current price increases of the binance coin (BNB) and of pancakeswap (CAKE).
Then follows Solana (SOL) with $11.7 billion (5.6%), Terra (LUNA) with 7.8 billion (3.8%), Avalanche (AVAX) with $6 billion (2.9%) and Fantom ( FTM) by 4.9 billion (2.4%). The largest DeFi protocols are Curve (CRV), maker (MKR) wrapped bitcoin (WBTC), aave (AAVE) and compound (COMP).
It should be borne in mind that these are estimates. According to DeFi Pulse The TVL for Ethereum is currently at $90 billion. It also does not clearly show the flow to this sector, as the TVL is price dependent.
Nevertheless, it shows a huge growth of this market. The TVL has doubled compared to June and has grown by almost 20,000% compared to June 2020.