According to the latest report from DefiLlama, the Total Value Locked (TVL) in DeFi platforms is about to hit a milestone of $200 billion. At the time of writing, the TVL is $179.79 billion, and experts believe that the number will grow in the coming months. The Total Value Locked refers to the sum of amounts locked in using various DeFi services like lending, staking, swapping, etc., through popular DeFi apps. A higher TVL means that more people are ready to invest in DeFi services. Defi Llama has also published the analytics for this data.
The Domination of Ethereum
It is worth noting that DeFi apps running on different blockchains account for the increasing TVL on the DeFi sector overall. Apps like AAVE, Curve, InstaDApp, Compound, and MakerDAO hold the top five spots when we consider the TVL contributions. These five apps alone have made users lock up more than 60 billion USD in the DeFi space. It is worth noting that most of these apps are running on the Ethereum blockchain, even though the presence of other blockchains like Solana, Polygon, Fantom, Terra, Avalanche, and Binance is not ignorable.
In total, $130.15 billion is locked up on Ethereum-based DeFi apps, which could be using one of the 208 protocols. It indicates, among other things, that investors have a soft corner for Ethereum-based apps even though the DeFi network is said to be slow. However, the statistics also show that almost all the top chains have seen a rise in the TVL in the past seven days. For instance, the Solana blockchain, home to 16 protocols and various DeFi apps, has had a 45.59% increase in the past seven days. Thus, only a few chains seem to have faced a downhill movement in their TVL.
Uniswap, the New Hope
If we come to the case of apps, Uniswap seems to have the upper hand with 3% dominance in the industry. The decentralized protocol has a $5.27 billion total value locked on the Ethereum DeFi space. Further analysis has shown that Uniswap has been processing many international transactions per week, referring to the growth people expect to see from Uniswap in the coming month. When the TVL of the entire DeFi space hits the $200 billion mark, Uniswap is likely to benefit the most from the change. Lending apps like Aave, Compound, Anchor, Cream Finance, and Venus have also recorded unforeseen performance.
Increasing Popularity of DeFi
Experts provide different reasons for the sudden rise in the popularity of Decentralized Finance. It has been proven that Decentralized Finance services are more profitable and transparent than their centralized and controlled counterparts. More importantly, many organizations have been working towards making all the DeFi services accessible to everyone. In particular, staking, lending, and yield farming are considered effective ways to generate passive income through crypto-assets. As more and more innovative apps appear, the DeFi industry is being ready to welcome a hitherto unheard-of audience to the world of DeFi benefits.
It needs to be seen whether the Total Value Locked can reflect and steer the growth of the DeFi space soon.