As the price of ETH and BTC rises, applications and startups on the crypto market acquire additional value. This has especially affected the field of decentralized finance, which was leading in 2020
True, judging by the statistics, the number of coins blocked in DeFi projects seems to be decreasing. This may be due to the fact that some market participants sold their assets when Bitcoin rose in value.
Despite capital outflows, DeFi’s value has reached a whopping $23.12 billion. Much of the value is locked in projects such as Maker (MKR), Aave (AAVE) and Uniswap (UNI).
On this screenshot you can see the TOP 5 of the best DeFi protocols:
On this chart, you can also trace an impressive surge that has occurred since the moment bitcoin reached the price of $18,000. After breaking the levels of 20, 30 and even 40 thousand dollars, the situation worsened.
The same has happened since December with the Ethereum cryptocurrency. ETH, which recently traded at $600, has now surpassed the 2018 high of $1,297.
Given the two-fold increase in the price of cryptocurrency, it is clear why the capitalization of DeFi projects has exceeded its historical maximum. And this despite the fact that the number of funds blocked in them is gradually decreasing.