Total Value Locked in Decentralized Finance Surpasses $6 Billion
According to data from DeFiPulse, there are now over $6.3 billion locked in the decentralized finance space, and three projects have over $1 billion worth of cryptoassets locked in them: Maker, Aave, and Curve Finance.
Maker is the protocol that issues the crypto-backed stablecoin DAI, while Aave is a lending protocol that recently announced the launch of a distributed governance testing on Ethereum’s Rospten testnet. Curve Finance is a stablecoin swap platform that recently launched the CRV token and the CurveDAO.
The majority of the value locked in the decentralized finance space is still on the Ethereum network, with users locking in funds to earn interest on their cryptocurrency holdings, or to take out cryptocurrency-backed loans from lending protocols.
Apart from Maker, the other two protocols have seen the value locked in them surge thanks to the progress they have been making. The total value of cryptoassets locked in Curve Finance surge from $200 million to over $1 billion in only five days, while Aave saw the value locked in it go from $500 million to $1.12 billion in only three days.
Other decentralized finance protocols are about to hit $1 billion locked in them as well. Synthetix, for example, has $835 million locked in it at press time, with the value moving up 16.62% in the last 24-hour period. Compound comes next at $744 million, while yEarn.Finance has $618 million locked in it.
The DeFi space’s growth accelerated earlier this year after Compound started distributing its COMP governance token. The token was issued to those who interacted with the platform, creating a yield farming craze that expanded throughout DeFi.