According to Defi Pulse’s data, the top three protocols account for almost half of the total value at 47.19%, with a cumulative TVL of $25.53 billion. Compound protocol under the ethereum chain tops at $10.88 billion, followed by Maker also on ethereum with $8.70 billion. Both protocols are in the crypto lending sector. Uniswap, also an ethereum chain, ranks third with $5.95 billion in total locked value. The all-time high-value milestone reflects the ongoing bull run of the cryptocurrency markets. The total locked value offers a clear picture of what is ongoing in the DeFi sector. Notably, the ethereum platform mostly underlies the DeFi application, with ETH used as one of the collateral options. The TLV growth suggests an increasing utility of the ethereum network. As previously reported by Finbold, a month ago, ethereum locked in DeFi hit an all-time high at $16.5 billion, 8.3% of its supply back then. In return, it pushes the value of ETH higher, which reciprocates by leading to a surge in the total locked value. Coincidentally, ethereum price has hit an all-time high after surging by 7.31% to trade at $2,276 by press time, according to data provided by CoinMarketCap. The new ethereum all-time high comes even as the cryptocurrency sector rally continues, mainly inspired by bitcoin. The number one ranked cryptocurrency is also trading at a new all-time high of $62,744 by the time of writing.
DeFi market reaps from the soaring crypto sector
Since the start of the year, the cryptocurrency market has been surging in value, with the DeFi total locked value experiencing a series of new milestones. The growth of total locked value is an indicator of the continuously booming DeFi world. However, with the value heavily reliant on the price of ethereum, the asset’s price swings might impact the total value locked in DeFi. The value also points to the possibility of the protocols are serving their intended purposes. However, this does not necessarily indicate that new capital and users are entering the DeFi sector.
