As several tokens notch new all-time highs and the overall value locked in DeFi protocols increases with the passing of each week, the decentralized finance market continues to charge full steam ahead.
Messari data reveals ventures such as AAVE, Uniswap , SushiSwap and Synthetix have all been double-digits rallied, generating a strong feedback loop as more users invest in farm yield protocols and capitalize on flash loans.
The total value locked (TVL) in DeFi has also increased as the values of Bitcoin and Ether have hit new highs in recent months, growing confidence and interaction on the numerous decentralized exchanges and lending platforms. Data from CoinGecko reveals that DeFi’s overall market capitalization has risen to $45 billion in the last six months.
As cointelegraph.com reported, from January 1 to January 25, DeFi networks collectively saw TVL grow from $15.6 billion to a record-high $26.1 billion. In fact, according to DeFi Pulse, in the past four days alone, the total value locked across DeFi protocols has risen from $21.49 billion to $26.173 billion.
This dramatic spike in TVL was supported by a $400 surge in Ether’s price from $1,053 on January 21 to a new all-time high on January 25 of $1,459. But, as seen by the growing number of DeFi tokens that are still securing new all-time highs, Ether does not account for all the gains.
The DeFi market accounts for only 4.6% of the overall market capitalization of cryptocurrency which currently stands at $976.6 billion.
