The Total Value Locked (TVL) in Decentralized Finance (DeFi) reached $6 billion over the weekend, crossing a new milestone.
DeFi’s TVL has been growing at an exponential rate since March. According to Unfolded, a crypto analytics account on Twitter, the number of days to reach each one-billion-dollar milestone has been getting shorter.
The first milestone took 917 days while the second milestone took 146 days. Since then, other milestones were achieved in less than 30 days. The achievement of $6 billion took only 2.2 days.
DeFi’s exponential success is still a mystery to many crypto experts. While the general financial sector is still struggling to recover from the impact of the ongoing pandemic, DeFi appears to be benefiting from it.
According to Clem Chambers, the CEO of ADVFN, a website for private investors, dramatic technologies such as DeFi provide a safe way from the “quicksand of economic depression”.
Contrary to popular belief, Chambers believes that it is DeFi, not Bitcoin, that is now the leading asset in the crypto market. Damir Bandalo, founder of Encore Club, however, believes that TVL is a flawed metric. He claims that its assets are counted multiple times.
According to the founder’s calculation, the TVL should be about $3.5 billion, roughly half of the current TVL on DeFi Pulse.
Image Credits: Pixabay
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