$500 Million Entered into Various Ethereum DeFi Protocols in the Last Week

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • Recently, it has reported that over $15 million worth of Ether (ETH) are locked down in Ethereum’s DeFi Protocols that too for each day in the past week.
  • DeFi also enables people to lend and borrow digital assets. As of now, the Compound protocol is the most popular DApp after MarkerDAO.
  • The uncertainty in the influx of over $500 million dollars may be explained by the sudden rise in the value of Compound (COMP).

Recently, it has reported that over $15 million worth of Ether (ETH) are locked down in Ethereum’s DeFi Protocols that too for each day in the past week. This amounts to four times the Ether that is mined every day. 

A Brief Insight over Ethereum’s DeFi Services

Decentralised Finance or in short DeFi is basically smart contracts, decentralised applications, protocols, or any such thing. Many of them have been built in Ethereum. And currently, the market for Ethereum DeFi has been blooming in the market. The best part of DeFi is that they are easily accessible to the uses and have very high functionality as well as interoperability.

DeFi also enables people to lend and borrow digital assets. As of now, the Compound protocol is the most popular DApp after MarkerDAO. MarkerDAO allows you to lock Ether for a stablecoin called ‘Dai’. Decentralised Exchanges or DEXes allow users to buy and sell tokens and since they are built-in the Ethereum platform, the exchanges operate without any upper authority. 

According to the data provided by DeFiPulse, a total amount of 500 million USD have entered into various DeFi protocols on the Ethereum in just a short period of 7 days which brings the average per day over $78 million. The number of locked ETH was around 461000 which at that time amounted to a total average of $15,946,071. If we look deep into Ethereum’s mining difficulty, the average Ethereum that was mined per day is 15,483 ETH or in other words $3,746,977 worth Ether. 

The Rise of Compound Held Accountable for the Sudden Influx

The uncertainty in the influx of over $500 million dollars may be explained by the sudden rise in the value of Compound (COMP). Recently Compound protocol has accomplished great success. It has overtaken MarkerDAO to become the largest Decentralised Finance protocol in the world in terms of total assets. The benefit of using Compound is that it provides immensely high liquidity and the users are allowed to borrow almost 50 – 75% of their staked digital assets in their liquidity pool. The data provided as per DeFiPulse says that over 590 million locked assets whereas MarkerDAO have total locked assets of $474 Million.

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