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Amid the 2021 crypto bull run, the decentralized finance (DeFi) markets have more than doubled in total value locked (TVL) year to date.
DeFi markets are showing a growth of 143% so far in 2021. This equates to $37.69 billion combining lending protocols, decentralized exchanges, derivatives, payments, and asset protocols.
Growth Dominated by Lending Protocols and DEXs
Among these various sectors, the lending protocol MakerDAO has achieved 16.47% dominance in the market according to data from DeFi Pulse. Maker DAO currently leads the pack with $6.21 billion total value locked.
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Decentralized exchanges (DEX) are the second-most prominent type of DeFi platforms after the lending protocols mentioned.
As pointed out by Bloqport Insights in a tweet, DEXs have witnessed more than $120 billion in volumes to date in 2021. Monthly DEX growth chart by Dune AnalyticsDelivered volumes will reach $67 billion by the end of the month.
Among the DEXs, Curve Finance represents over 30% of the locking value. There is also an honourable mention for Uniswap and for SushiSwap, two big names in cryptocurrency.DeFi is primarily linked to the Ethereum as a currency since most protocols and dApps are built on the Ethereum blockchain.
In addition to that, markets also seem to respond to price changes in Bitcoin. These changes were evident on the most recent price change in the cryptocurrency markets on Feb. 22 — often referred to as “Bloody Monday.” Uniswap and SushiSwap, whose competitive saga made big news in September last year, are both honorable mentions.
DeFi Linked to Flagship Cryptocurrency Assets
DeFi is primarily linked to Ethereum as an asset since a majority of protocols and dApps are built on the Ethereum blockchain. However, the market also seems to respond to price changes in Bitcoin as well.
The institutional asset manager Greyscale Investments also listed DeFi-linked assets like Aave, Cosmos, and Polkadot in order to broaden its portfolio. Along with Bitcoin and nearly every other altcoin, the DeFi market experienced a drop in value as well. Any actions that a reader takes upon the information on our website are strictly at their own risk.
Although DeFi growth in 2021 seems to be extremely rapid, there are signs pointing towards the possibility of this growth being sustainable. Institutional asset manager, Greyscale Investments have also listed DeFi-related assets like Aave, Cosmos, and Polkadot to expand its portfolio. Even the privacy-focused browser, BRAVE even announced the launching of its browser-integrated DeFi wallet with access to a DEX that users can trade their assets on.
