The decentralized finance (DeFi) sector is going through a dynamic process. Multiple tokens reached an all-time high. The total value locked in DeFi protocols is increasing every week.
Data from Messari; Projects such as AAVE, Uniswap (UNI), SushiSwap (SUSHI), and Synthetix (SNX) all show double-digit growth and more users are interacting with protocols to take advantage of staking and flash credit.
The price of Bitcoin (BTC) and Ether (ETH) has reached new highs in recent months, while the locked-in total value (TVL) in DeFi protocols has also risen. The amount of optimism and engagement on the various decentralized exchanges and credit platforms increased. Data from CoinGecko shows that the total DeFi market value has increased to $ 45 billion in the last six months.
From January 1 to January 25, the amount of locked assets on DeFi platforms increased from $ 15.6 billion to $ 26.1 billion.
According to DeFi Pulse, the total value locked on DeFi protocols increased from $ 21.49 billion to $ 26.173 billion in just four days.
This sharp increase in TVL helped Ether price jump from $ 1,053 on Jan 21 to an all-time high of $ 1,459 on Jan 25.
Despite these impressive developments, the DeFi sector currently accounts for only 4.6 percent of the total cryptocurrency market cap, which is $ 976.6 billion.
Despite representing only a small portion of the total cryptocurrency market, the rapid growth of the DeFi industry and the increasing prevalence of cryptocurrencies are paving the way for explosive growth in the industry.