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- Total assets in the DeFi market have reached an all-time high above $14 billion.
- The growth relates to the growing price of Bitcoin and Ether.
For days now, the value of assets in the decentralized finance (DeFi) market jumped to $14 billion – thanks to the growing price of leading digital currencies, Bitcoin, and Ether. In reality, however, a significant number of assets, particularly Ether, have been leaving the DeFi market. This probably means that DeFi’s valuation is being sustained by the current rally in the crypto price. As such, the market is likely to take a hit when the rally calms.
DeFi market records new ATH
According to the information by DeFi Pulse, the total assets locked in the DeFi protocols reached another all-time high of $14.41 billion. The growth can largely be related to the increasing price of Bitcoin and Ether, which are among the most locked assets in DeFi protocols. Bitcoin has been trading above $18,000 for days now and jumped by 34 percent since November. Likewise, Ether (ETH) surged to $600 yesterday and has posted about a 54 percent increase since the month began.
During these times, however, a significant number of Ether was leaving the DeFi market. As of November 1, there were about 8.94 million ETH locked in several platforms. There are currently 6.89 million ETH remaining, which means over 2 million ETH was withdrawn within a period of 23 days. There is a possibility that the coins are withdrawn for Ethereum 2.0 staking or to cash out on the crypto’s price upticks. Meanwhile, the number of Bitcoin in the DeFi market has remained mostly steady.
SushiSwap is losing out
Maker, WBTC, and Compound are the top three largest protocols in the market. Decentralized exchange (DEX), Uniswap lost the top dominance due to the end of its liquidity reward program. As Cryptopolitan reported, the DEX’s liquidity was being sucked up by other rivals, particularly SushiSwap, to the extent it was the closest platform to Uniswap by TVL. However, SushiSwap has dropped to the eighth-largest with a negative 4.7 percent asset change.Â
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Ibiam Wayas
Ibiam Wayas has covered the crypto news beat since 2019. He studied Computer Science at National Open University of Nigeria. His work has appeared on various crypto news platforms, including Coinfomania, Crypto News Australia, and AltcoinBuzz. Drawing on his background in Computer Science, he now focuses on crypto, robotics, and longevity news.
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