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DeFi market size stays below USD 48 bln

Wednesday 30 June 2021 10:28 CET | News

The DeFi market size stood at below USD 48 bln at the end of June 2021, a large 45% plunge compared to May 2021 figures, according to data presented by BlockArabia.com.

Most decentralised finance apps run on the Ethereum blockchain, and they operate without a central control service over the entire system. Through DeFi lending, users can lend out cryptocurrency, as a traditional bank does with an official currency and earn interest as a lender.

In June 2020, the DeFi market size, as measured by the amount of cryptocurrency locked, stood at USD 1.85 bln, revealed the Defipulse data. By the end of the year, this figure jumped to over USD 16 bln. However, after a large growth throughout the last year, the DeFi market exploded in 2021, reaching USD 46 bln value in February. Over the next two months, the amount of cryptocurrency locked in the DeFi market surged to USD 64 bln, a 300% increase since the beginning of the year.

In May, the DeFi market hit an all-time high, with the total amount of cryptocurrency locked surging to USD 87 bln on 12 May 2021.

However, June 2021 brought a sharp fall, with DeFi market size plunging by nearly USD 40 bln in a month and a half. According to the online publication, this could have been caused by significant changes in the price of almost 100 different cryptocurrencies, which may have led to investors pulling out. Another factor was the growing transaction fees of Ethereum, the main cryptocurrency of use within DeFi.

Uniswap and Wrapped Bitcoin Increased Their Market Cap in 2021, Chainlink Down by 10% YTD.


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Keywords: DeFi, cryptocurrency, blockchain, Token
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies