DeFi growth helps push crypto’s share of the global money supply above 2%

This year decentralized finance (DeFi) has proven to be a transformative sector for the cryptocurrency ecosystem and it is also making waves in among global financial markets as institutional investors become entranced with the potential to earn high yields on stablecoins, altcoins and Bitcoin.

While the price action from Dogecoin (DOGE) has dominated the headlines in recent weeks, Delphi Digital has been chronicling the growth of the DeFi ecosystem on the Ethereum (ETH) network which has steadily been gaining strength over the past month.

Ethereum DeFi performance year-to-date. Source: Delphi Digital

According to Delphi Digital researchers, while the majority of growth occurred on Ethereum-based DeFi platforms, protocols across the top ecosystems including Ethereum, BSC, Solana (SOL), Avalanche (AVAX), Polygon (MATIC) and Terra (LUNA) have begun to gain traction and now account for 34% of the total value locked in DeFi.

Multi-chain DeFi total value locked. Source: Delphi Digital

The BSC ecosystem is the second-fastest-growing DeFi ecosystem behind Ethereum, thanks in part to its connection with the Binance ecosystem which has immense resources to help get its native protocols off to a strong start.

Venus (XVS), PancakeSwap (CAKE) and PancakeBunny (BUNNY) are the three top DeFi protocols on the BSC and the total value locked on the network totals $49.1 billion.

Total value locked in DeFi on the BSC. Source: Defistation

Collectively, all layer-1 ecosystems have now surpassed $130 billion in cumulative total value locked (TVL).

Stablecoins form the foundation

According to Delphi Digital, DeFi native stablecoins have played a major role in the growth of the ecosystem and now account for nearly $10 billion of the total market cap.

Dai’s (DAI) circulating supply recently surpassed the $4 billion mark to establish itself as the largest DeFi stablecoin, while UST is a rapidly rising challenger fr the Terra ecosystem.

DeFi stablecoin market caps. Source: Delphi Digital

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