The newfound Distributed Finance (DeFi) industry has enjoyed a substantial amount of growing interest. The majority of these systems are based on the Ethereum network, but the entire sector itself has experienced a 130% boost in the past twelve months. Needless to say, Ethereum’s getting a lot of good business from it.
Latest Stages of Crypto Evolution
DeFi Pulse is a service tracking platform. According to its numbers, there was around $305.95 million in Ethereum and other various forms of crypto that were locked up by way of DeFi applications. This year, however, had that number skyrocket to $700 million.
The hands-down most popular DeFi application out there seems to be the Maker DAO lending project. In this platform alone, around $385 million, or 2.4 million ETH, is locked in at the Ethereum-based platform. Amusingly enough, this isn’t the all-time high of the project in terms of value, the number for that being a staggering $505 million, but it marks the most popular.
The highest ever was achieved by way of market fluctuations, rather than actual Ether commitments, with the current record boasting the most Ether committed to the project. Maker has indeed hit gold, currently holding 2.415 million ETH, all locked up in its DeFi app. This accounts for a staggering 55.41% of all activity across the entire Decentralized Finance sector.
Heavyweights in Ethereum
Other popular applications have cropped up as well, such as the synthetic derivatives platform going by the name of Synthetics. Another key title in this sector is the Compound lending applications. Combined, these two platforms hold more than $132 million and $96.5 million locked up, respectively. As is the trend here, both these apps are based on the Ethereum network. Almost all the DeFi applications are nowadays.
Lightning vs 7 Others
The first application you get, when you go down the popularity list, that isn’t based on Ethereum is in the eighth place: Bitcoin’s Lightning Network. Lightning has managed to lock up about $7.2 million in funding on its platform, representing the largest decentralized payment platform currently standing in the industry. Lightning has enjoyed a flurry of high-profile adoptions as of late, but last year wasn’t exactly a good one, despite high expectations.
This massive spike in interest in the DeFi industry, especially amongst the Ethereum network, stands as great news for the blockchain network. The price of its namesake coin, the Ether (ETH), has been suffering a downward tumble ever since the middle of 2019 when it reached a high of about $351. As it stands now, ETH is priced at around $142.
Cryptowolf, a twitter-based crypto analyst, described the growth as “parabolic,” speculating that the price of ETH will continue to rise, just like the DeFi is increasing continuously in the Ethereum network.