To determine how popular DeFi is today, one has to look beyond decentralized finance on the Ethereum blockchain. Other blockchains have a thriving ecosystem of their own, although some are more “visible” than others. Reaching the $100 billion milestone may take some time, though.
Over $52 Billion In DeFi
When comparing the different DeFi data aggregators, one may notice the numbers don’t always add up. That is to be expected, as most platforms only track decentralized finance projects on the Ethereum blockchain. It is the ecosystem with most DeFi solutions today, but it remains crucial to look at the broader industry at all times.
New statistics by DeFi Llama paint a very different picture. As the DeFi TVL now sits above $52 billion across the different ecosystems, everyone can see how much the industry continues to grow. It has taken several months to meet this TVL level, but it can easily double in the next few months.
As can be seen, MakerDAO remains the platform with the highest Total Value Locked, even today. It is well ahead of Wrapped Bitcoin and Aave. Other prominent projects in the top 10 include Compound, Uniswap, SushiSwap, and 1Inch. The majority of DeFi platforms note a substantial seven-day change in TVL. Although some projects lose ground, that is only to be expected.
As far as competing with Ethereum goes, PancakeSwap is the first non-Ethereum DeFi venture on the list. Thorchain makes it into the top 30 as well, but the other 28 spots all belong to Ethereum-based solutions. It is a bit odd to see multi-chain solutions so low on the list, as one would expect these to attract far more liquidity.
Sustaining Future Growth
As the battle lines become more apparent, the future of decentralized finance hangs in the balance. New and existing projects will need to find ways to ensure additional liquidity keeps trickling in. That may be much easier said than done due to current price increases for all significant crypto assets. If prices go up, people are less inclined to put it into decentralized finance.
Additionally, it is crucial to point out the top five projects in this space account for $26.21 billion in TVL, or over 50% of the total. Competing against these “behemoths” is never straightforward, as it requires a very different approach. One has to keep in mind there are many unexplored options in the industry that can bring in the next $50 billion in TVL fairly quickly.
Reaching that $100 billion mark is the next major hurdle for the industry to overcome. It may take a while, although the current growth rate indicates overall interest in DeFi keeps rising. While that may be the case, now is not the time to stop innovating and exploring new business models.
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