As the world of decentralized finance industry is still firing on all cylinders, exciting things are bound to happen. For Ethereum DeFi, things are heating up lately. As the total value locked is now closing in on $70 billion, things look up again.
Ethereum DeFi TVL Keeps Rising
It has been an interesting year for Ethereum DeFi projects. After overcoming some initial struggles and numerous security incidents, it appears things are improving gradually. With the Total Value Locked now rising again to almost $68 billion, nothing can prevent this industry from hitting the next significant milestone.
As all projects note a strong increase in TVL lately, the next milestone is well within reach. However, one has to consider recent gains aid this increase for all crypto assets, including the prominent DeFi tokens. Combined with Ethereum’s value going up, it is not entirely surprising to see values skyrocket in quick succession.
Even though Maker remains the top project by total value locked – at $10.5 billion – it only notes a small 24-hour increase in TVL. SushiSwap seems to be gaining the most momentum with a 12.1% increase in TVL all of a sudden. It is the first time this DEX surpasses the $5 billion mark, creating an exciting milestone for fans of this ecosystem.
It is not too surprising to see some smaller projects note big increases in total value locked. When the current TVL is well below $100 million, any change will prove significant for these newcomers. The likes of dHEDGE, Auctus, DeFiner ,and Mushrooms Finance all note a strong increase by over 10% in 24 hours. Sustaining this momentum will never be easy, especially when competing against some of the “behemoths” in this industry.
What Comes Next For Ethereum DeFi?
Following this growth, it is likely to assume there will be a push toward $70 billion in liquidity for Ethereum DeFi. The majority of this liquidity will likely go to established projects such as Maker, Aave, Compound, and Uniswap. Speaking of which, Aave might be the second project on the list to surpass $10 billion in total value locked, even though Compound is not too far behind either.
For everyone else, the coming months will prove crucial. Dozens of projects all try to compete for market traction in Ethereum DeFi today, yet very few of them will remain appealing. More specifically, there are quite a few projects only focusing on one thing. In contrast, the top ventures try to branch out in multiple directions and get their asset integrated into other DeFi solutions.
Despite the ongoing competition, there is still plenty of room for experimenting with new ideas. And concepts. The next generation of decentralized finance applications and products will need to bring something unique to the table. What that “unique” aspect will be exactly is a different matter.
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