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- The DeFi sector is soaring with a total value locked (TVL) of more than $30 billion
- It is known that the positive sentiments in the sector regarding cryptos is the reason beyond the surge
- In recent months DeFi projects have surged tremendously, mainly since October 2020
TVL in DeFi or Total Value Locked in decentralized finance has been affected after the sector’s growing positive sentiment. According to data from DeFi Pulse, the DeFi data aggregator, TVL has hit $30 billion. Currently, the aggregator lists around 63 projects, among which MakerDAO’s MAKER is leading the projects with $5.46 billion in the total locked value. Following the fact, it is found that the MAKER has an 18.20% dominance in the sector.
TVL in DeFi is soaring with soaring crypto market
The TVL metric for quantifying the sector’s growth represents the dollar value of all the tokens locked in a smart contract. Following the DeFi Pulse data, it is known that in the list of the projects contributing to the TVL metric, MakerDAO (MAKER) is in the first position. Following the leading project, AAVE, Compound, Uniswap, and Curve Finance are in the top five lists.
Where MAKER is with $5.46 billion, it is estimated that AAVE is with more than $4 billion. Simultaneously, Compound with $3.68 billion, Uniswap with $3.34 billion and Curve Finance has more than $3 billion locked in dollar terms. If we combine the values and estimated values, it is nearly $19 billion, about more than 65.6% of the total value locked.
The projects have grown tremendously in the past months
The projects available in the DeFi sector have different models and fundamentals. However, it is observed that the growth of the entire ecosystem has been skyrocketing in recent months. Indirectly the surge reflected in the steady soar in the TVL in DeFi. Last year in November, the total value locked stood at $13.69 billion. Simultaneously, with a tremendous bullish surge in late December, the value stood at $20 billion. Whereas currently, it crossed $30 billion.
The reason behind the revamp of the DeFi narrative
It is found that several new names are helping renovate the DeFi narrative with continually gaining prominence. Such new names also include the contributors of SushiSwap, Synthetix, and BadgerDAO. Such contributors are also prominent as they locked $2.65 billion, $1.82 billion, and $1.23 billion. Indeed, the total Ether locked has also surged to record 7.4 million Ethereum, among which the total BTC locked coming in at 45.8k.
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.
