Data shows: the total value locked in DeFi is overestimated by 2.83 billion US dollars

The numbers shown by the source may be a bit high, but as one Twitter user pointed out, this happens in traditional finance too.

The total value locked in a DeFi protocol can be difficult to calculate, as a dollar locked can create its value multiple times. For example, users can lock ETH (in MakerDAO) to create DAI (a decentralized dollar-based stablecoin).

The 24-hour BTC network-wide contract transaction data shows that multiple parties are dominant: According to the data of Contract Emperor, in the recent 24-hour BTC network-wide contract transaction volume, the proportion of long positions is 49.67%, and the proportion of short positions is 50.33%. Among the mainstream contract exchanges, Huobi’s quarterly long position ratio is 50.85%, and its short position ratio is 49.15%; OKEx’s quarterly long position ratio is 50.41%, and its short ratio is 49.59%; BitMEX contracts’ open long ratio is 52.31%, and its short ratio was 47.69%. [2020/9/19]

Users can then lock the same DAI in another protocol, and the duplication doesn't end, as different protocols allow for different lending and duplication practices.

Dynamic | Data shows: 5 billion BTTs were transferred from Upbit to an unknown address: According to Whale Alert monitoring, at 16:09 Beijing time, 5 billion BTTs (worth $2.357 million) were transferred from Upbit exchange (address starting with TDU1u) To an unknown address (the address starting with TA9Fn). [2019/10/28]

DeFi is not limited to market applications

Dynamic | Data shows that the transaction volume of the top 5 stablecoins in Q2 2019 is more than that of PayPal's payment service Venmo: According to TradeBlock data, the transaction volume of most stablecoins has soared. In the second quarter of this year, the five largest stablecoins based on Ethereum (Tether, Dai, USD Coin, Paxos, and True USD) collectively had more transactions than Venmo. (Ambcrypto)[2019/7/12]

Only about 3.85% of ETH and 0.18% of Bitcoin (BTC) are locked in DeFi, which means there is still plenty of room for growth. Wrapped Bitcoin (wBTC) is the most popular form of tokenized Bitcoin on the Ethereum blockchain, with approximately 50% of its $274 million market cap locked in Compound. RenBTC, the decentralized version of wBTC, has also started to act as a gateway to DeFi.

ETH remains the most popular cryptocurrency in the DeFi ecosystem, accounting for 50% of the value locked, while BTC accounts for only 10%. Stablecoins account for 33% of the total value locked, with the rest made up of other ERC-20 tokens such as Basic Attention Token (BAT), Augur (REP) and others.

Is there room to grow?

Regardless of the total dollar value locked in the DeFi ecosystem, there is clearly a lot of room to grow. The value locked will likely continue to increase as liquidity mining and other forms of lending become attractive.

While many see DeFi as the future of finance, the fledgling industry still has a number of major security issues to address, and it must do so while dealing with a market that seems reminiscent of the ICO hype of 2018. This has led to poorly planned and rushed projects like Yam Finance that were launched without proper auditing.

Tags：

Bitcoin Exchange