See More

DeFi TVL Breaks All-Time High, Surpassing $32 Billion

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • The total value locked (TVL) in decentralized finance (DeFi) continues to soar.
  • This coincides with the major growth in Ethereum prices.
  • DeFi users added an addition $3 billion in value across platforms yesterday, an amount nearly five times larger than the entire DeFi market in early 2020.
  • promo

The recent Ethereum price all-time high bodes well for the entire DeFi system, helping it surpass the $30 billion milestone.

Now closing in on $32.5 billion as Ethereum gets ready to test the $1,700 level, DeFi is continuing to explode. This coincides with significant growth across some of the top DeFi platforms.

Tokens like UNI and AAVE are breaking all-time price highs as well. More people are flocking to alternative financial systems with better borrowing and lending rates.

Even though transaction fees on Ethereum are at record highs, DeFi platform usage has continued to surge.

The Decentralized Finance Takeover

A year ago, TVL in DeFi was sitting well under $1 billion. Since then, value locked has grown by over 4,500 percent.

Yesterday, the daily growth DeFi value increased by around $3 billion. This is significantly higher than the size of the entire market not long ago. There are various reasons for this growth, with social and economic hardships all over the world being one of the primary examples.

defi token swaps

With the rise of inflation, and in some cases, total lack of access to a functional financial system, decentralized finance provides a user-focused alternative. These platforms are permissionless and provide more significant value propositions than their traditional counterparts.

Some of the most popular DeFi use cases are exchanges, lending and borrowing, staking, interest-earning, and insurance-like risk management.

New Options Prioritize User Value

However, even without focusing on the permissionless nature of DeFi, the pure value offering is enough to convert technologically savvy users to this new ecosystem.

Maker DAO, the top DeFi platform with almost $6 billion locked, offers extremely favorable lending options. Users can lend or receive a loan, turning everyday users into self-sovereign banks that can generate interest or borrow at competitive rates.

Furthermore, there are also options like Uniswap, the largest decentralized exchange (DEX) on the market. Uniswap has almost singlehandedly turned ICOs and centralized exchange-based token launches obsolete.

With a DEX, any project can instantly list its token and provide liquidity as a market maker. This enables the entire trading lifecycle to occur without paying exorbitant fees to exchanges to get a project listed.

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

photo_Harrison_Seletsky-.jpg
Harrison Seletsky
Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.
READ FULL BIO
Sponsored
Sponsored