New decentralized finance (DeFi) has been recorded today as the Total Value Locked (TVL) in all protocols has crossed the $200 billion benchmark. According to data from DeFi Llama, the DeFi milestone was collated from all smart contract enabled protocols including Ethereum, Binance Smart Chain (BSC), Polygon, Solana, Fantom, and Avalanche amongst others. At the time of writing, the exact TVL in the DeFi protocols is pegged at $210.36 billion.
The Total Value Locked metric is a measure of the total amount of capital being held on decentralized exchanges, loan platforms, synthetic asset protocols, and other unique platforms with a business focus centered on decentralization. According to DeFi Llama, Curve Finance has the biggest TVL of $15.89 billion, and it dominates by as much as 7.55%.
While the top 10 biggest decentralized finance protocols are native to the Ethereum network, smart contracts and DApps on other blockchain networks are also not doing completely badly. BSC-backed PancakeSwap brandishes a TVL of $4.96 billion, ranking it in 11th position. The DeFi Llama data analytics platform provides more comprehensive data compared to other analytics service providers, and it also covers protocols with a relatively smaller ecosystem.
New DeFi Milestone Shows Commensurate Growth with the Broader Industry
The DeFi milestone follows a similar trend which saw the over digital currency industry market capitalization retouch the $2 trillion benchmark in the past week. The observable growth in the broader industry has notably rubbed off on the DeFi market, which has come off as a notable expression of the inherent utility in the blockchain.
As a deviation from typical growth stock investments, the DeFi ecosystem has served as a crucial pivot for many new investors making their way into the digital currency world. Both retail and institutional investors are beginning to embrace the potentials offered by DeFi protocols to generate alternative income. DeFi protocols offer a higher earning percentage, a more flexible borrowing mechanism, and have lowered the barrier entry for many investors to consider diving into the space.
Despite these obvious growth factors, many analysts believe that DeFi is still in its infancy and has more potential for growth in the near future. This projection is supported by on-chain data which shows the DeFi TVL has surged from $603.22 million to the current figure it is today.