The total value of DeFi hedging exceeds US $ 1 billion, and the rise in ETH price is not the only reason

As Cointelegraph reported on February 8, as Ethereum broke the $ 200 mark yesterday, the value of cryptocurrencies now locked in the DeFi (decentralized financial) market reached $ 1 billion.

3d525bfa82117771212e95764fcbfece

Total value locked in the DeFi market, February 7. Source: Defipulse.com

As of February 7, the price of Ethereum was close to $ 220, up 4.5% on the day, and nearly 22% this week.

DeFi is short for Decentralized Finance, which refers to the use of blockchain, digital assets and smart contracts in financial services such as credit.

According to data from analysis site difipulse.com, the USD 1 billion locked in the Defi market, that is, smart contracts, protocols and decentralized applications (Dapps) built on Ethereum, almost 60% are stable currency DAI owned by MakerDAO .

Difipulse's data shows that today, a year ago, the value of DeFi lock-in was about a quarter, or $ 276 million.

While celebrating this milestone, relevant parties in the Ethereum community pointed out the role of the Bitcoin Lightning Network, which accounts for 1.7% ($ 8.5 million) of the total value of the Ethereum Defi, which is ten times for DeFi contracts and applications. One of the big digital assets:

99ec9cc5e98484d8b121669ba6bad901

DeFi Total Value, Top Ten Digital Assets, February 7. Source: Defipulse.com

The website calculates the total value of DeFi by calculating the total balance of Ethereum and ERC-20 tokens in the DeFi smart contract and multiplying these balances by their US dollar spot price to calculate the total value every hour.

The total value of DeFi hedging is related to the price of Ethereum

Cointelegraph reported last fall that although the dollar value chart of digital assets locked in DeFi shows some correlation with the price of Ethereum, it does not depend entirely on the price of Ethereum.

After the price of Ethereum dropped in July 2019, the value of the assets locked by the DeFi application resumed growth despite the continued decline in the price of altcoins. In the short term, the correlation between the total value of DeFi hedging and the price of Ethereum will be closer.

Copyright Notice:

Original: https://cointelegraph.com/news/value-locked-in-crypto-defi-markets-hits-1-billion-milestone

Author: Marie Hulliet

Compilation: Captain Hiro

Source (translated): Babbitt Information (http://www.8btc.com/553251)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Policy

The Crypto Circus: A Bug’s Billion-Dollar Bonanza

During the 10th day of Sam Bankman-Fried's trial, talks focused on a software glitch and the allocation of funds for ...

Blockchain

The hacker is keeping a close eye on the currency exchange: 5 were killed and 8 were "Lai Lai"

Digital currency is becoming a fertile ground for hackers. The hot exchange is undoubtedly a huge "gold mine&quo...

DeFi

FTX Drama: Scandals, Shocks, and a Crypto Crash!

Sam Bankman-Fried's fashion reputation takes a hit as Caroline Ellison's testimony proves unfavorable.

Blockchain

The data is good for the stock market of the sudden market: Which is the liquidity of the exchange?

This paper analyzes and compares the liquidity of major exchanges on April Fool's Day. In the short time from 12...

Blockchain

Exchange Real Volume Report (on) | TokenInsight

Summary of points: 1. According to the report, 36% of the exchanges (11) have a real trading volume ratio higher than...