The total value of ether locked into decentralized finance (DeFi) dApps has passed 3 million ETH ($552 million) for the first time, according to data on DeFi Pulse.
Of this total, more than half – 1.6 million ETH – is locked into the MakerDAO dApp, the top DeFi decentralized application on the Ethereum blockchain, and a core component of the Dai Stablecoin System, which allows users to leverage their Ethereum assets to generate dai tokens.
Ether is, by far, the dominant cryptocurrency used in DeFi apps. By comparison, bitcoin currently has just 1,400 BTC locked into DeFi thanks to the Lightning Network – worth $11.6 million at current prices.
Growth of DeFi
DeFi is still in its infancy, but an ever-growing array of financial tools are becoming available from an increasing array of platforms on the Ethereum network that enable services such as instant transaction and settlement, exchange-free lending and borrowing of digital assets, and collateralization. All of these services require no middlemen or central authority, making them cheaper and more reliable.
The top three Ethereum dApps by total value locked are:
- MakerDAO – the Dai Stablecoin collateralization system, with 1.6 million ETH locked
- Compound.finance – the crypto lending and borrowing platform, with 607,300 ETH locked
- Synthetix – for creating synthetic assets, with 331,600 ETH locked
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