As the crypto-economy approaches the $2 trillion mark, the total value locked (TVL) of decentralized finance (defi) is falling below $200 billion, and now, as the digital currency market rebounds, back to $200 billion. While TVL in defi has dropped by 0.51% in the past 24 hours, statistics show that today’s TVL hovers around $210.29 billion, with Curve Finance accounting for 8.75%.
DeFi TVL rebounds, Ethereum Classic soars, NFT transaction volume up 32%
On March 20, 2022, the total lock-up value of decentralized finance once again rose to the $200 billion mark, hovering at $210.29 billion. At the end of January, TVL in defi fell to a low of $185.2 billion, and since then, is up 13.54%.
Defi protocol Curve Finance runs on eight different blockchains and accounts for 8.75% of hundreds of defi protocol TVLs at $18.41 billion. On March 20, the second-largest DeFi protocol by TVL was the Makerdao protocol, with a total locked value of $16.2 billion. Curve and Makerdao are followed by Lido, Anchor and Aave respectively.
Terra’s Anchor protocol is now TVL’s largest lending defi protocol with $14.08 billion, while lending protocol Aave has $12.83 billion.
Defi Total Value Locked (TVL) statistics as of March 20, 2022.
In terms of the share of TVL among several blockchains supporting the Defi protocol, Ethereum dominates with 54.92% ($115.27 billion) of total value locked at $210.29 billion. On March 20, there were 570 different decentralized finance protocols on Ethereum.
Terra is the second largest DeFi project, currently valued at $26.66 billion, or 12.7% of the entire TVL. Terra is followed by Binance Smart Chain ($12.03B), Avalanche ($11.13B), Solana ($7.01B) and Fantom ($6.62B).
On March 20, the smart contract platform currency with the highest market capitalization was worth $642 billion. The top five smart contract platform coins by market cap include Ethereum, Binance Smart Chain, Terra, Solana, and Cardano.
The top five 24-hour smart contract platforms include ethereum classic, moonriver, qtum, boba network, and neo. Ethereum Classic is up 21.9% in the past 24 hours.
The top five smart contract platform gainers this week are edenchain, ethereum classic, kylin network, gather and casper network. Edenchain (EDN) is up 39.2% over the past 7 days.
In terms of market dominance between Bitcoin (BTC) and smart contract platform coin Ethereum (ETH), BTC accounts for 40.4% of the entire market in the $1.9 trillion crypto economy, while ETH accounts for 17.7%.
Ethereum’s market cap is 43.8% away from surpassing BTC’s market cap. At the time of writing, ETH’s 24-hour block reward revenue is greater than BTC’s revenue. In the past day, ETH miners received $79,645,721, while BTC miners received $74,790,000 in rewards.
The total value locked on the cross-chain bridge on Sunday was $22.78 billion, with 49,845 unique addresses utilizing the cross-chain bridge technology in Defi.
In the past 7 days, 15 different blockchains recorded $529,519,374 in non-fungible token (NFT) transactions, a $529 million increase of 32.10% over last week’s NFT transactions.
What is DeFi?
The first entry among the top DeFi interview questions would obviously point towards its definition. Decentralized finance is actually a financial ecosystem developed over the Ethereum blockchain network with various protocols and platforms. DeFi helps in easily moving around cryptocurrency tokens. At the same time, it also helps in trading, lending, and borrowing cryptocurrency tokens.
What does the future of DeFi look like?
As of now, there is no specific answer to this question, but the future looks bright for DeFi as it is slowly becoming mainstream. Technological advancement in the underlying infrastructure for DeFi is faster than ever with new innovative ideas popping up daily. 2021 looks like a great year for DeFi seeing the recent developments.
Is DeFi legal?
Yes, almost all DeFi projects or protocols need to abide by financial regulatory measures licenses to function regardless of whether they’re centralized or decentralized. Thanks to DeFi, financial watchdogs (e.g., the SEC) have started to notice the crypto space more than ever.
Is DeFi safe?
Yes, almost every protocol undergoes smart contract audits to ensure the codebase is secure and free from bugs and vulnerabilities. Majority of the popular protocols adopt strict security measures to ensure your crypto assets remain safe. Still, it’s advisable to conduct your due research before investing in any project.
Do I need some kind of cryptocurrency to participate in DeFi?
Yes, you would need cryptocurrency to participate in DeFi. Since Ethereum is the platform of choice, most DeFi projects’ tokens are based on the ERC-20 standard. Hence, it would be better for you to hold some ether for the sake of ease.
Do I need a crypto wallet for DeFi?
Yes, a digital wallet is a prerequisite for you to be able to dabble in the field of DeFi. There are several wallet options available for interacting with DeFi applications — MetaMask, WalletConnect, TrustWallet and Argent being the popular ones.
What are the important benefits of DeFi?
The primary objective of DeFi focuses on resolving the issues evident in traditional finance. Traditional finance depends on intermediaries such as banks. However, DeFi applications rely on code for specifying the resolution of any potential dispute. Subsequently, users have the ability to maintain comprehensive control over their funds. This can help in reducing costs related to use of financial services products to ensure a frictionless financial system.
The deployment of DeFi on blockchain takes away any specific point of failure, and data can be spread easily across various nodes. So, each node has copies of transactions carried out on the network. Therefore, it is difficult to impose censorship and a possible shutdown of service. The most significant benefit of DeFi points out to the improved accessibility of financial services for a broader audience.
How do DeFi applications work?
Another top mention among DeFi questions to ask in an interview definitely points out that it’s working. DeFi works through the development of dApps on a blockchain network like Ethereum and using smart contracts for automation. By using the two facets, DeFi applications could easily accommodate various financial services on a specific network. Presently, there are many notable examples of dApps tailored for lending automated loans known as crypto loans. Many apps related to DeFi also include the creation of stablecoins, investment options, asset exchange, and others available presently.