Running out of steam, DeFi? The figures contradict. The total value of cryptocurrencies engaged in decentralized finance (DeFi) now stands at $ 13.7 billion. As for the number of users, it has increased by 55% over the past 6 weeks.
After the euphoria of the summer, decentralized finance (DeFi) protocols and tokens seemed to be stalling. After a stabilization phase, they are once again on a growth path, like Bitcoin and altcoins.
At least one indicator shows this. At 1er In August, the total value (TVL) of funds allocated to decentralized finance reached $ 4 billion. Since September, it has been stable around 11 billion.
$ 11.7 billion for the 7 main DeFi platforms
According to DeFi Pulse, which measures total value locked, since November 8, it has embarked on a new cycle of growth. So, on November 13 at 9 a.m., that figure was about $ 13.74 billion.
Several DeFi protocols are driving this growth. These include Uniswap, whose smart contracts have a crypto value of over $ 3 billion. But Maker, WBTC, Compound, Aave, Harvest Finance and Curve are also growing.
DeFi, however, remains a highly concentrated market. Indeed, the seven main DeFi protocols alone represent approximately $ 11.7 billion of the total TVL of decentralized finance.
However, these are no longer the focus of growth and other services are also advancing. Better still, the DeFi Top 3 is no longer so dominant. Harvest Finance is thus undoubtedly the protocol of the moment.
DeFi’s benchmark asset farming platform, Harvest Finance has almost doubled its Total Value Locked in just 24 hours. Between November 11 and 13, it climbed from $ 473 million to $ 911 million.
+ 55% DeFi users since early October
Be careful, however, of a possible reversal. As of October 26, the protocol was already attracting more than $ 1 billion worth of cryptocurrency. Three days later, that amount was down to nearly $ 310 million.
For CryptoQuant CEO Ki Young Ju, the current trend in DeFi could be explained by an investor fascination with “high yield and risk free strategies”. It’s not doing Ethereum 2.0’s business.
He continues, “For conservative investors, betting on DeFi projects is a better strategy than owning or using other risk-free strategies like arbitrage on exchanges. “
This interest is also reflected in the sharp increase in DeFi users. Dune Analytics has approximately 860,000 unique user addresses. Their number has increased tenfold over one year.
But the increase has been particularly strong since October (+ 55%). Last month, the number of addresses jumped from 555,000 to 775,000. And on the first 11 days of November, 85,000 new users landed.