Over $60B TVL In DeFi Despite The Current Market Dip

DeFi is a universal term used for several financial apps in cryptocurrency. Majorly for the disruption of financial intermediaries, it is an idea that leaves out both the ambiguous paperwork and the middlemen (traditional finance) to substitute them with smart contracts.

TVL means Total Value Locked. Several Decentralized Finance sites use TVL as a reference point. TVL refers to the number of assets currently staked in a liquidity pool or protocol. It is the original supply holdings in a detailed DeFi application.

The decentralized Finance aspect of cryptocurrency depends on whale heaviness to offer massive liquidity in different project pools, making Decentralized finance less decentralized.

While the whole of the cryptocurrency market is in a blood-like zone, the DeFi aspect of the industry is exerting resilience as the collective Total Value Locked is still over the Sixty billion USD level.

Related: DeFi’s money markets are finally luring in institutional investors

DeFi lending projects, Compound $COMP leads the Decentralized Finance market, contributing $10.94 billion that represents over 18% of the Total Value Locked (TVL). 

Nonetheless, according to CoinMarketCap (CMC), COMP is over 21% down to 451 USD. Several Decentralized Finance projects including $SUSHI, $AAVE, and $MKR are down 21.52%, 18.09%, 15.62% respectively.

This Decentralized Finance token dump is related to the king of all crypto assets (Bitcoin) 11.60% value retracement. Total Value Locked in DeFi measures the assets locked within these decentralized applications with an ongoing argument that the higher the value locked up in a DeFi decentralized app, the better.

Decentralized Finance project suppliers are relentless in bringing in new improvements to give traditional finance a commendable competitor. Despite the market dip, DeFi Total Value Locked still stays above $60B all-time high, showing that the DeFi ecosystem is still growing and relenting on development as institutional investors are also moving into the system.

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