Decentralized finance market taps yet another never seen before highs in terms of Total Value Locked (TVL) across various decentralized Crypto projects. How to calculate Total Value Locked (TVL)? You get it simply by multiplying the total amount of Ether currency (ETH) and ERC-20 tokens locked in smart contracts and the current market price in USD.
Total DeFi Tokens Value Locked Crosses $2B
Defi Pulse mentions that DeFi industry has crossed the significant milestone of $2 billion total value locked in USD. According to Defiant News‘ Camilla Russo, this peak represents a 3 times growth for Defi Total Value Locked in 7 months in 2020. What an amazing growth in a short time!
It is amazing that DeFi alone is surging when the rest of the Crypto market is still oscillating within a range. We may want to attribute the humongous growth to top DeFi platforms distributing their own ERC20 tokens. People call it as “liquidity farming“.
Liquidity Farming is a process that rewards investors for their liquidity support into these platforms that supports basic financial activities like lending , borrowing etc. Liquidity farming has its own advantages and disadvantages. Make sure you understand the scams and risks in the newly born space before you invest. DYOR before investing in Crypto as always!
#Defi Total Value Locked hits $2B today (Chart courtesy : @defipulse ).
Next potential stop with the exponential new wave of users coming in is $10B. Banks needs to be totally afraid!! 😎 pic.twitter.com/ZcCJrJYq9b
— CryptoandFIRE.com (@cryptoandfire) July 7, 2020
DeFi tokens clearly outperforms non-DeFi Cryptocurrency markets at the moment. The traditional cryptocurrencies appears to move between a range and look indeterminate for months together. We will understand the movement from Bitcoin on how the whole space is going to evolve. Hopefully, DeFi trend starts the much anticipated bull run after 4 years of dull season.
Are you already investing in Decentralized Finance? I have already unbanked one half of my assets and started investing in cryptocurrencies and DeFi. Planning to be majorly onboard with Crypto by the start of 2021. I hope you board the train before the train leaves the station. Finally, there is a generational wealth opportunity ahead. You just need to see it and grab it.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates