ETH tied DeFi reaches new all-time high
DeFi applications are decentralised financial applications (e.g. for lending) which are intended to replace the traditional financial market by the creation of a peer-to-peer financial ecosystem. By using smart contracts, DeFi users can lend or borrow their Ether (ETH) as collateral without intermediaries. The lending market alone offers huge potential, as it is a billion-dollar business.
DeFi continues to set new records. As the data from DeFi Pulse shows, the total number of Ethers (ETH) linked to DeFi applications has reached a new record high. With 2.63 million ETH, a new record was reached yesterday, equivalent to around 647 million US dollars. The growth has been steady, confirming the continuing DeFi trend.
Currently, Maker, Compound and InstaDApp lead the DeFi movement and bind the largest amounts of Ethereum. Almost half of the ETH (49.1 percent) is stored in Maker. The maker platform is used within Dai, an algorithmic stablecoin linked to the US dollar.
Second in the DeFi ranking is the Compound crypto lending platform, which binds around 317,000 ETH. The San Francisco-based company, which recently received a $25 million Series A round from venture capital firm Andreessen Horowitz, relies on smart contracts to bring together crypto borrowers and lenders.
Author : Jake Simmons