|-Total value locked (TVL) in DeFi hits a new all-time high over $39B.|
-However, a high TVL doesn’t mean increased participation or activity in the DeFi space.
-Moreover, Adjusted TVL usually tracks the changes in the TVL in the ecosystem.
The total value locked in decentralized finance (DeFi) has marked a new all-time high close to $40 billion.
Total Value Locked (TVL) in DeFi Hits New ATH Over $39B
According to DeFi Pulse, the total value locked (TVL) hit the $39.74 billion mark, at the time of writing.
Total Value Locked (USD) in DeFi (Source: DeFiPulse)
The TVL shows the clear picture of what is happening in the DeFi ecosystem. Moreover, the bullish milestone is impacted by spiking US dollar value of crypto tokens like Ether (ETH) and other assets that are locked as collateral in several projects and DeFi applications.
Even more, when the token value increases, TVL also soars. In addition, a high TVL doesn’t mean increased participation or activity in the DeFi space. Due to this reason, it’s worth looking at the parallel effect developed by DappRader, called Adjusted TVL.
Adjusted TVL usually tracks the changes in the TVL in the ecosystem. While fixing fund prices to the starting of the given period under scrutiny. This gives more insight of the crypto ecosystem without the wildly volatile and bullish or bearish token prices.
Nevertheless, there has been a steady surge in the net inflow of assets to the DeFi ecosystem in the first months of 2021. As of February 9, their adjusted TVL reached $19.15 billion, as compared with $14.91 billion on January 1. According to DappRadar, the adjusted TVL is at $16.66 billion, at the time of writing.
2021 has shown great crypto milestones at the beginning of the year. However, Bitcoin (BTC) is currently trading at $48,048 and Ether at over $1,794, as per CoinGecko. For those invested in the long-term prospects of specific DeFi projects, the healthy growth of total adjusted TVL in the DeFi space will be a less spectacular, but still significant mark of their close efforts.