{"id":433075,"date":"2020-08-03T03:00:29","date_gmt":"2020-08-03T03:00:29","guid":{"rendered":"https:\/\/wncen.com\/?p=433075"},"modified":"2020-08-03T02:43:00","modified_gmt":"2020-08-03T02:43:00","slug":"ethereum-fundamentals-defi-4-billion","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ethereum\/ethereum-fundamentals-defi-4-billion\/","title":{"rendered":"Ethereum Fundamentals: DeFi Total Value Locked Passes $4 Billion"},"content":{"rendered":"

After a near-unstoppable uptrend, Ethereum’s<\/a> rally was stopped dead in its tracks just 20 hours ago. In the span of just around ten minutes, the price of the leading cryptocurrency plunged from $415 to a low of $325 on most spot exchanges.<\/p>\n

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Chart of ETH's price action over the past few days from TradingView.com<\/a><\/pre>\n
This move purportedly triggered over $100 million worth of liquidations over Ethereum’s margin markets.<\/p>\n
Despite this extreme volatility across the cryptocurrency market, Ethereum’s killer use case, decentralized finance (DeFi), continued to gain steam.<\/p>\n
Related Reading:\u00a0Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold BTC, DeFi Still in Vogue<\/a><\/h6>\n
DeFi Locked Value Surmounts $4 Billion Milestone<\/strong><\/h2>\n
Over the past few months, the term “DeFi” has risen to prominence in the cryptocurrency space.<\/p>\n
This is due to the increasing appeal of migrating financial services onto a decentralized platform, which gives more the opportunity to make yield.<\/p>\n
DeFi has seen such growth that per DeFi Pulse<\/a>, a data service tracking this segment of the cryptocurrency market, there is $4.21 billion worth of value locked in blockchain-based finance applications.<\/p>\n
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Chart of the amount of value locked over the past three months (90 days) from DeFi Pulse.<\/pre>\n
This is up from the $1 billion worth of coins locked in DeFi just ninety days ago, and around $500 million worth of cryptocurrencies locked in DeFi at the start of the year.<\/p>\n
Much of this growth has been triggered by the following five protocols: Maker, Compound, Aave, Synthetix, and Curve Finance. All five protocols are based on Ethereum and have seen significant fundamental developments since the start of the year.<\/p>\n
Andrew Kang, a DeFi analyst and the founder of Mechanism Capital, sees even more upside for the DeFi space despite its already exponential growth.<\/p>\n
He published<\/a> a Twitter thread on July 1st that outlined his belief and outlook from his “inside perspective.”<\/p>\n
Kang explained that the usage of DeFi has \u201ctraditionally been concentrated with hardcore users and\/or ETH whales,” and only now is DeFi seeing adoption by retail.<\/p>\n
He added that development in this segment of the cryptocurrency industry is hitting an “inflection point” with more on-chain liquidity, better development tools, successful case studies, education, and much more.<\/p>\n
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With recent DeFi token price run-ups, people have been crying "bubble!".<\/p>\n
So is it too late to invest or not?<\/p>\n
Here are my thoughts on where we are in the state of the DeFi market from an "inside perspective" pic.twitter.com\/cDAhpc9tVN<\/a><\/p>\n
— Andrew Kang (@Rewkang) July 1, 2020<\/a><\/p><\/blockquote>\n