DeFi

DeFi continues to grow as new protocols grab market share

The Block

Quick Take

  • The total value locked in DeFi protocols has grown from $181 million in July 2018 to more than $500 million now
  • About 2% of ether’s total supply (~2.1 million ETH) is currently locked in DeFi protocols
  • In December 2018, more than 91% of the total value in DeFi was locked in Maker but its dominance has since fallen by more than 20%
  • Maker is followed by Compound (~12% of total value locked), Synthetix (3.7%), Uniswap (3.5%), Nuo Network (3.4%), Dharma (2.5%) and InstaDApp (2.2%)
  • If DeFi continues to grow at the same pace as in 2019, the total value locked would surpass $1.5 billion by the end of 2020

Decentralized Finance (DeFi), non-custodial financial protocols run (mostly) on top of Ethereum, have seen significant growth throughout the last year.

The existing DeFi protocols can be categorized into five categories:

  • Lending (Maker, Compound, Dharma, etc.)
  • Derivatives and prediction markets (Synthetix, Augur, etc.)
  • Decentralized exchanges (Uniswap, DutchX, Bancor, etc.)
  • Payment channels (xDai, etc.)
  • Asset management (Set Protocol, WBTC, Melon, etc.)

The total value locked in DeFi protocols has grown from $181 million in July 2018 to more than $500 million now.