- Value locked (in USD) in DeFi reaches a new all-time high of $1.6 billion.
- Compound accounts for nearly $600 million of the value locked in DeFi.
The decentralized finance (DeFi) ecosystem has been growing in popularity ever since its inception. Put simply; decentralized finance is the use of blockchain technology within the financial services sector. DeFi saw immense growth in 2019; however, 2020 is shaping up to be an even better year for DeFi, as value locked soars to record levels.
To put the rise in context, value locked in DeFi began the year below $700 million and has since skyrocketed to an eye-watering $1.6 billion. The growth in the DeFi ecosystem presents a unique use case for blockchain and cryptocurrency in traditional finance.
Compound Takes Number One
DeFi’s total value locked surges as Compound becomes the largest decentralized finance application by value locked. Compound’s massive growth was widely covered by crypto media as it now alone accounts for nearly $600 million in value locked away.
Compound (COMP) tokens made headlines during its massive rally peaking at $427 on Coinbase Pro. The rally has since cooled down with COMP tokens now trading at $230 at the time of press. Despite COMP’s massive volatility, Compound’s surge in value locked may be the turning point for decentralized finance adoption.
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