The Decentralized Finance (DeFi) market has been a hot topic over the weeks, as it continues to gain more value. Today, the total value of cryptos locked in DeFi has nailed as high as $6 billion. This somewhat signals how fast the market value has been rising, given that about $4 billion in crypto was locked in the DeFi over the past couple of weeks.
Over $6 Billion cryptos locked in DeFi
Following the data from DeFi analytics site DeFi Pulse, the current cryptos locked in DeFi totals about $6.29 Billion. The three top DeFi products – Maker, Aave and Curve Finance leads the pace with nearly $4 billion of cryptocurrency locked in them. The leading DeFi project, Maker has a market dominance at 23.22 percent, with a value of $1.46 billion.
Curve Finance, which sits as the third-largest DeFi project, briefly became the third protocol to enable $1 billion cryptos locked in DeFi. This came after the non-custodial protocol, Aave reached the same mark on Saturday and currently sees about $1.12 billion. For Curve, however, the decentralized exchange has dropped to $997.8 million at the time of writing.
DeFi bubble sentiments
Following the increasing value of cryptos locked in DeFi and development of new projects almost every week per se, the uptrend in the entire industry has been likened to the 2017 ICO bubble. Many cryptocurrency industry players and financial analysts called it the ‘DeFi bubble.’ However, the likes of Nansen’s Alex Svanevik thinks that the current value of the mark is very small to cause a severe crash.
Svanevik said the uptrend in the DeFi market is somewhat different from the ICO bubble in a number of ways. He explained:
“It has a much more bottom-up distribution, and in fact, there are signs that retail investors managed to move ahead of the whales on this one, in stark contrast to the ICO boom where whales were getting sweet deals behind the scenes.”