- DeFi breaks $1 billion record, seeing a growth of over 200% in the past year
- Moving towards the trillion dollar case for ETH
In a new milestone, Decentralized Finance has surpassed $1 billion in total locked value, according to Defi Pulse.
DeFi leverages decentralized networks to transform the traditional financial products into transparent and trustless protocols.
Earlier this year, this amount was under $700 million and now in just a month, we crossed the $1 billion threshold. Over the past year, the total value locked in DeFi has recorded a growth of more than 200%.
$1 billion locked up in DeFi is a pretty cool milestone to see 🔥
— Pomp 🌪 (@APompliano) February 7, 2020
“DeFi AUM: from one million to *ONE BILLION* in only 878 days. A historic day,” commented Spencer Moon, Head of Crypto Investments at DTCCapital, a crypto-focused investment fund.
Out of these $1 billion locked amount, $678 million belongs to Ethereum as 3.1 million ETH are locked in DeFi projects in comparison to 1.6k of Bitcoin (worth $15.6 million) and 66.5 million of DAI (worth about $67 million).
Currently, the Ethereum-based lending platform Maker has a dominance of 59.75% in DeFi space.
— Maker (@MakerDAO) February 7, 2020
Ethereum Enjoying DeFi’s Success
Ethereum is clearly establishing itself as the protocol to become the foundation for the new decentralized financial economy. According to ConsenSys’ 2020 prediction,
“There will be an explosion of synthetic assets and new derivatives which will create tens of millions in value in 2020 and eventually billions in value.”
Blockchain Capital also made a bold prediction of DeFi hitting $5 billion in 2020. This would also mean more locked ETH which would push its prices up.
Already, the second-largest cryptocurrency by market cap is surging in value. Up 68.09% YTD, ETH is trading at $219, a price level last seen in September.
— Josh Rager 📈 (@Josh_Rager) February 5, 2020
As we reported, Lucas Campbell of DeFi rate also talked about a trillion-dollar case for Ethereum with DeFi creating “a new paradigm for global finance” with one common theme Eth.
“A trustless economy requires trillions in economic bandwidth. And that's the trillion-dollar case for ETH,” summarized Mythos Capital founder Ryan Sean Adams.