The Decentralized Finance sector took the world by storm in 2020 after its value grew by fourteen times. Its presence in the crypto space continues to be felt as its value continues to skyrocket.
In response to DefiLlama, a ranking and metrics provider for DeFi protocols, the total value locked (TVL) on this sector stands at $208 billion.
Ethereum leads the pack in DeFi’s TVL at $141.92 billion, representing 68.2%. Binance Smart Chain (BSC) and Solana take the second and third positions at $17.38 billion and $10.71 billion, respectively.
DeFi is based on blockchain-based smart contracts that fulfill certain financial functions based on the underlying code.
Some experts count on this industry to expertise more progress in the coming years. For example, Matthew Roszak, a veteran crypto investor, recently said that the DeFi sector would grow to be an $800 billion trade because of rising mainstream crypto adoption, the worldwide chase for yield, and elevated inflation.
On the other hand, blockchain analytic firm Chainalysis reported that America had the highest DeFi adoption rate, followed by Vietnam, Thailand, China, and the UK.
More investments proceed to trickle into Ethereum 2.0
In accordance to market insight provider Glassnode:
“The entire value in the ETH 2.0 Deposit Contract just reached an ATH of 7,906,210 ETH.”
Ethereum 2.0, also known as the Beacon Chain, is seen as a game-changer that will provide a transition from the current proof of work (POW) consensus mechanism to a Proof-of-Stake (POS) framework. As a result, scalability and effectivity will be boosted.
Meanwhile, the holding continues to thrive within the Ethereum network. Reportedly:
“The number Ethereum addresses Holding 100+ Coins just reached a 4-month high of 43,048.”
Holding is a favored strategy in the crypto space as a result of cash are stored in cold storage and digital wallets for future functions apart from speculation.
Source: Blockchain News