DeFi Explodes: Assets Under Management 936% Up In One Year

The total value locked (TVL) — arguably an equivalent of traditional finance's assets under management — of decentralized finance (DeFi) protocols exploded over the last year and is a testament to the staggering growth this industry is seeing.

What Happened: According to research released by DappRadar on Thursday, the current DeFi TVL is $114.8 billion — an increase of 936% since the same time last year. The same metric also increased by 75% between July 23 and Sept. 5, reaching a peak of $195 billion.

See Also: WHAT IS DEFI?

The report also highlights that Ethereum ETH/USD is still the dominant ecosystem in the DeFi space despite increasingly heated competition with protocols such as Solana SOL/USD, Binance Smart Chain BNB/USD and Avalanche AVAX/USD.

Ethereum leads the way by hosting 68% of the TVL, followed by Binance Smart Chain with 15.5%. The report did not include Solana and its $9.5 billion locked, which accounts for 8.27%, according to DeFi data service Defi Llama.

Photo: Nick Chong via Unsplash