DeFi’s total value locked (TVL) crossed $7 billion, with only six projects holding over 90% of the funds.
According to data from DeFi Pulse, the DeFi TVL surpassed $7 billion on Wednesday, August 26, representing a 271% growth within two months. This is also a $1 billion increase in a little over a week. Since May, it has increased by over 600%. If the Ethereum protocol continues to gain popularity at this rate, it is expected that its TVL will reach about $27 billion before the year runs out.
Although there are 40 DeFi projects in all, only six hold over 90% of the capital locked. As at press time, Aave holds the largest share with $1.5 billion, followed closely by Maker with $1.42 billion. Both projects offer lending services. Curve Finance comes in third with $1.14 billion, followed by derivatives project Synthetix with $850.9 million. Yearn.finance comes in next at $814.1 million. The sixth project is Compound with $797.4 million.
Aave topped the list shortly after the United Kingdom Financial Conduct Authority granted it an Electronic Money Institution license, boosting its legality.
Although many DeFi projects are having a good year, others such as Yam Finance have crashed, losing millions of investors’ money. On August 14, Ethereum co-founder Vitalik Buterin said that people “do not have to participate in “the latest hot DeFi thing” to be in Ethereum. He encouraged people to explore other dApps.
Image Credits: Pixabay