As Crypto Goes Bullish Ethereum DeFi Continues to Heat Up

The bitcoin price breached $16,000 USD for the first time in years. PayPal just opened up cryptocurrency services to all its U.S. customers. The Ethereum ecosystem has been on fire this year and the Eth2 evolution is now only days away.

That’s but a taste of all the major developments happening around the cryptoeconomy right now.

Zooming in, Ethereum’s decentralized finance (DeFi) arena — another one of the space’s biggest sectors — has been contributing to, and reflexively thriving from, these increasingly bullish conditions in a big way lately. For proof, let’s look at the numbers.

DeFi Hits New TVL Record

Total value locked (TVL), a metric popularized by DeFi Pulse, indicates how much crypto assets are currently under management, i.e. locked within, a given DeFi protocol or the entire DeFi ecosystem taken as a whole.

For context, the TVL of the entire DeFi economy cracked the $1 billion milestone for the first time ever back in February 2020. Then over the summer DeFi’s TVL started to go absolutely parabolic.

Source: DeFi Pulse

While there’s been chop along the way, the build up of interest and activity has proceeded up through this week, as DeFi’s TVL hit a new all-time high just over $13.58 billion on Wednesday, Nov. 11th. This means people are trusting their assets in permissionless DeFi protocols like never before.

Source: DeFi Pulse

Inside the Action

Not long ago, there wasn’t a single DeFi dApp that had a TVL over $1 billion. Now there are five: Uniswap, Maker, WBTC, Compound, and Aave.

Source: DeFi Pulse

Uniswap, the decentralized trading protocol that’s arguably been Ethereum’s biggest star this year, has been DeFi’s biggest dApp per TVL for weeks now. Earlier this month I predicted Uniswap would hit a $10 billion TVL at some point in 2021, but that forecast is starting to look increasingly conservative as Uniswap’s already risen to ~$3 billion before the end of 2020.

In second place presently TVL-wise is Maker at $2.31 billion….

Read More