Is DeFi’s Total Value Locked (TVL) The Best Way To Measure Market Growth: DappRadar Report

Is DeFi’s Total Value Locked (TVL) The Best Way To Measure Market Growth: DappRadar Report
фото показано с : bitcoinexchangeguide.com

2020-8-21 04:13

The excessive growth in decentralized finance (DeFi) total value locked metric offers a distorted view, a report from DappRadar states. Focusing on the most significant DeFi protocol, MakerDAO, the researchers concluded that 75% of the total value locked (TVL) on the platform arises from token price increases instead of surging demand levels.

In a report published on Wednesday, DappRadar, a decentralized app (dApp) aggregator, stated that the DeFi growth could be significantly overstated. The foremost DeFi metric is the total value locked (TVL), which measures the amount borrowed to amount deposited on lending DeFi protocols and the liquidity provided on decentralized exchanges (DEX).

According to DeFi Pulse, the current TVL stands at $6.55 billion, a magnificent rise from $4.01 billion at the start of August – the ecosystem reached $2 billion in TVL on July 1. This extraordinary growth, however, is greatly overstated according to the report, which employed an inflation-adjusted formula to determine the actual TVL growth across DeFi products.

“The inflation-adjusted total value locked is calculated by locking the token price value at the same level as ninety days before 2020-08-17.”

The report focuses on MakerDAO, currently dominating the DeFi space with 21.87% of total value locked on the platform – $1.43 billion. The platform reclaimed the top position from Compound (COMP) after crossing the billion-dollar mark at the end of July before surging past $1.5 billion on August 14.

Over 75% of MakerDAO’s TVL Increase is Overstated

However, DappRadar experts argue that “75% of the total value locked increase on MakerDAO was fueled by increases in the top 3 token prices,” meaning only a quarter of the growth came from new money entering the space.

The top three assets on MakerDAO – Ethereum (ETH), Maker (MKR), and wrapped BTC (wBTC) – contribute to 97% of the locked assets on the platform. Over this research period, all three tokens experienced magnanimous returns in USD; hence, focusing on the “dollar TVL metric could give a distorted view” on the real growth, the report states.

Source: DappRadar

For instance, ETH (accounting for 73% of the TVL on MakerDAO) grew over 131% in less than 30 days boosting the TVL by $620 million during the period. However, employing the inflation-adjusted model, the total value locked increased by only $111 million. See the chart above.

In total, MakerDAO increased its TVL by $800 million in 30 days across the top three tokens while an inflation-adjusted TVL only shows an increase of $200 million in the same period.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Defi (DEFI) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.47 (-100%)

defi growth dappradar decentralized amount report value

Источник: bitcoinexchangeguide.com

defi growth → Результатов: 121


Фото:

Growth DeFi On Fantom: Expanding A Novel Cross-Chain Ecosystem For Sustainability And Maximum Benefits

Growth DeFi is ramping up at a rapid pace to maximize capital efficiency and value by leveraging the power of DeFi protocols. With a vision to completely redefine the cross-chain ecosystem, Growth DeFi has revealed plans to launch on Fantom (FTM),  a highly scalable blockchain platform for DeFi, crypto dApps, and enterprise applications. This expansionRead More

2021-12-28 14:00


Фото:

Ergo Marks Anniversary Event To Drive The Growth Of DeFi

Increased activity in both DeFi and blockchain have risen the total value locked (TVL) of assets from $500 million as of March 12 (‘Black Thursday’), to the tune of over $50 billion. Growth has been attributed to increased crypto awareness, the emergence of improved DeFi ecosystems, and Compound’s (COMP) distribution of governance tokens. Its autonomous […]

2021-7-2 16:09


Фото:

Harmony (ONE) Grant to Bootstrap Growth of Chainlink-Based DeFi Applications

Harmony—a fast, sharded, and scalable blockchain network for decentralized applications (dApps), is integrating Chainlink—an interoperable network of secure and tamper-proof oracles. Accompanying the incorporation is a dedication of part of the $7 million grant to bootstrap the growth of Chainlink-based DeFi and cross-border finance dApps built on Harmony as per an August 5 update.

2020-8-5 19:07


Matic Network Launches A $5M ‘DeFi Incubation’ Fund Aiming To Challenge Ethereum’s Dominance

Over the past few months, the blockchain ecosystem has witnessed a huge growth in the number of DeFi projects with most of them built on the Ethereum platform. As the market for these “new fintech projects” products grows, Matic aims at pushing some of them to its blockchain from Ethereum. The Matic lead development team […]

2020-8-4 17:49


Why Ethereum May Severely Underperform DeFi Tokens During Next Bull Market

Ethereum has seen some positive price action throughout the past day, although it remains highly correlated to that of Bitcoin It also remains caught within its macro trading range between $230 and $250, with its buyers being unable to surmount the upper boundary of this range ETH investors have been speculating that the growth seen within the DeFi sector could be enough to propel the crypto higher That being said, one analyst and fund manager […]

2020-7-23 23:00


Фото:

Three Simple Reasons Why Ethereum Won’t Benefit from DeFi’s Growth

DeFi-related tokens have been caught within an intense bull market over the past several weeks, with many posting 100%+ gains This growth has been fueled by return-hungry investors looking to take advantage of “yield farming” This trend isn’t fading as fast as some analysts expected and could continue strong in the months ahead Although built upon Ethereum, the DeFi sectors growth hasn’t boosted ETH’s price One prominent investor doesn’t believe it will ever become the […]

2020-7-3 23:00


дальше еще 72 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

US indicts nine in crypto laundering scheme linked to drug cartels

A major money laundering network powered by cryptocurrencies linked to international drug cartels has been dismantled by United States federal authorities. On Nov. 21, a federal grand jury in the Southern District of Florida indicted nine individuals for conspiracy to…

Coinbase to delist WBTC on December 19

Coinbase's delisting of wBTC may shift market dynamics, potentially increasing reliance on its own cbBTC and affecting wrapped Bitcoin liquidity. The post Coinbase to delist WBTC on December 19 appeared first on Crypto Briefing.

AKT surges 35% on Binance perpetual listing

AKT has emerged as one of the leading gainers among the top 100 crypto assets after securing a perpetual listing on Binance Futures. The native token of Akash Network rose 35%, hitting a six-month high of $4.66 on Nov. 19,…

DeFi-протокол Polter Finance лишился токенов на $12 млн

Платформа кредитования Polter Finance пострадала от атаки с использованием функции мгновенного займа. Ошибка произошла из-за уязвимости оракула на рынке SpookySwap. Протокол лишился криптоактивов на $12 млн.