The decentralised finance (DeFi) ecosystem has been one of the fastest-growing in the cryptocurrency space, and it just crossed a huge milestone
The DeFi space has experienced massive growth over the past few months, thanks to the adoption within and outside the cryptocurrency space. In fact, the DeFi space now accounts for roughly 10% of the total cryptocurrency market cap.
According to the latest data obtained from tracking site DefiLlama, the total amount locked in decentralised finance protocols is now $200 billion. However, the amazing part of the statistics is that the value has gone up by 100% since June.
The site stated that the total value locked (TVL) in DeFi protocols is $200 billion. The metric refers to the dollar value of the tokens locked in smart contracts within the protocols. Most of the funds are used to offer DeFi services, including lending and decentralised trading.
The figure obtained by DefiLlama cuts across some of the leading smart contract blockchains, including Ethereum, Solana, Avalanche and Cardano. Ethereum remains the leader in the space as the blockchain hosts most of the DeFi protocols in the cryptocurrency sector.
The total DeFi value on the Ethereum network is approximately $140 billion, more than 60% of the total amount. The Binance Smart Chain (BSC) comes in second place and has roughly $18.5 billion held in its smart contracts.
Solana is one of the fastest-growing smart contract blockchains in the world, and its smart contracts are worth $11.7 billion. The next three smart contract blockchains are Terra, Avalanche and Fantom. Despite Ethereum still maintaining the lead, DefiLlama said the blockchain had lost significant dominance due to the rise of other blockchains like Solana, Avalanche and Terra.
With the rise in DeFi protocols, the cryptocurrencies behind the smart contract blockchains have also experienced a rapid surge over the past few months. Ether surged from roughly $500 at the start of the year to reach a new all-time high above $4,300. Solana also set a new all-time high above $200 last month as it remains one of the best performing cryptocurrencies this year.