The amount of ethereum locked in decentralized financial applications, dubbed as DeFi (for defiance?), has reached an all time high of 2.417 million eth.
The dollar amount is near the all time high of $685 million, currently standing at $650 million.
Some of it is in bitcoin, around 1,400 BTC worth $13 million for the Lightning Network and the wrapped bitcoin token, but the vast majority is in eth and ethereum based tokens.
As can be seen above defi locked eth has surpassed the previous high of ◊2.33 million reached on April 11 when a mini-bull run began.
The amount of defi eth then turned downwards as price fell in July, but since then it has been gradually rising while price has been sort of sidewaying.
There’s a clear correlation here up to July, but not further. That makes it a bit puzzling as arguably you’d expect movement.
That’s because defi is sort of magic internet finance where from eth you create more eth through some DAI token or on Compound from other tokens in a leveraging game of chairs.
So up to July, all is normal. Price is rising, defi eth is rising. Price is falling, they have to pay back the debt so less defi eth. Then the two detach, presumably because the amounts are too small to move the market even though this locked eth is kind of being taken off the market.
There’s some considerable growth here since the last time we looked. In particular, Synthetix has risen from less than $20 million in August, to now $100 million.
That’s presumably because they’ve added some more “synthesized” cryptos – as in kind of tokenized into long or short versions. It used to be just eth and btc if we’re not mistaken. Now they have quite a few.
Synthetix is sort of like CME futures, but through smart contracts and Oracles. So you’re not exchanging TRX or XTZ, with the platform planing to add stocks too, but you are exchanging tokens that represent say BTC, and in particular whether it will fall or rise, with the price itself based on spot exchanges, including conceptually decentralized exchange.
The locked value here is in SNX, their own token, with that acting as collateral instead of eth.
While for the top defi platform in amounts, MakerDAO’s dai, some $340 million worth of eth is locked.
That has given DAI an all time high market cap of just above $100 million. That used to be the limit, but it looks like they’ve lifted it ahead of the multi-collaterals launch later this month.
Compound is the second biggest, increasing by $20 million since August, with 20 defi dapps now listed, up 2.
That indicates reasonable growth in the defi space, and for some of them pretty fast growth, giving us at least something that reaches all time high this year.