Total Value Locked (TVL) in DeFi Touches $200 Billion – Curve in the Lead

2021/10/15 10:35:38

The cryptocurrency market is back on the run to the upside as the bulls seem to be buying the discounts every step of the way. But based on observations, the price markets of several crypto sectors are holding back despite their exceptional performance on the fundamental side of things.

One such example is the DeFi space. The sector in itself has been doing great ever since it has gained public traction. But shedding light on the price market of the protocols related to the DeFi industry, most native tokens are underperforming relative to their fundamental aspect.

Having that said, the overall direction of the DeFi price market still remains in line with the developments of the projects. Most tokens of DeFi protocols have been in the buyer's market despite the downturns that came along earlier this year. It is about time that perhaps holding the prices at lower-than-expected levels.

Total Value Locked Grows by 10x in Ten Months

The total value locked (TVL) in DeFi is directly related to the demand for the industry. Defi is certainly securing its long-term presence in the crypto market based on the patterns revealed by the TVL.

According to the latest numbers revealed by the Defillama platform, the aggregate locked value in DeFi has surpassed the $200 billion mark for the very first time. Despite the pricing market being out of sync, seeing the sector achieve these figures is surprising.

To keep things in context, the total value locked in US Dollars was just $20 billion at the start of this year. And these were the numbers when the entire cryptocurrency market was surging and hitting new highs. However, as the DeFi market increased in popularity towards the second quarter of 2021, the total value locked continued to climb at a much faster rate. The TVL in DeFi now is at $200 billion - ten times its value at the beginning of the year.

Source: DefiLlama

Curve Overtakes AAVE to Lead in TVL

When it comes to the division of the overall locked value among the DeFi protocols, Curve has gained the lead, just edging out AAVE. The Curve has been maintaining the number one place with a locked value of $16.71 billion as of this writing. However, the difference is minuscule in comparison to the following place since AAVE's TVL stands at $15.75B. Next up after AAVE is MakerDAO, taking third place, with a TVL of $14.53 billion. The following three protocols including WBTC, Instadapp, Compound with a total value locked between $10B and $12B.

Source: DefiLlama

Curve Partners with Harmony – Could Benefit Growth in Both Platforms

Going simply by the TVL, Curve is certainly running a monopoly in the DeFi space lately. And the partnership of Curve with Harmony is one of the reasons for it to surge to the top position.

Curve Finance is presently the most comprehensively used DeFi system, with almost 17 billion in USD total value locked (TVL), as mentioned earlier. However, according to Harmony Protocol, the partnership will benefit both platforms, which announced the merger through its official Twitter handle.

Curve Finance will use Harmony's interoperability technologies to provide deep on-chain liquidity, according to the release. Further, Harmony also disclosed that partnership would allow Curve to benefit its bridges to Ethereum blockchain and Binance Smart Chain. The bridging would essentially allow the swapping of tokens across different chains.

“We've just launched on @harmonyprotocol with some $ONE rewards.” – Charlie Watkins (@charlie_eth)

Curve Finance will also offer its stablecoin exchanging solutions to the Harmony ecosystem due to the alliance. Harmony has also announced a $2 million in $ONE token rewards to assist the DEX protocol in advertising its debut.

According to Giv Parvaneh, a senior blockchain developer at Harmony, the DEX platform grew rapidly after its introduction, as it accumulated almost $16 million TVL in the first 12 hours of its debut on the Harmony blockchain.

The DeFi Chains Keep up with the Bull Run

Although the DeFi protocols are unable to get in sync with their price market, the chains linked to them are outperforming the crypto market.

Out of no surprise, Ethereum is in the lead with a TVL of a whopping $149 billion. Binance is currently in second place with 124 protocols linked to it. But the ones that have been surging recently are Avalanche, Fantom, and Waves. While the top chains have seen an increase in the total value locked by 1-3% in the past week, chains such as Avalanche and Waves have observed over 40% growth in TVL in the past seven days.

The figures are in sync with the price market as well. Most of the emerging DeFi chains, including Solana, Terra, Avalanche, Fantom, Waves, Arbitrum, have been outperforming the entire crypto sphere, with all of them trading at their all-time highs.

Now that the chains that power the DeFi space have made a move, the bull run in DeFi protocols’ tokens awaits. Stay tuned and watch the KuCoin Blog for the follow-up articles related to this topic. All the best!

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