Total Value Locked on Ethereum DeFi Protocols Rose by 7,104% Since 2020

Decentralized Finance (DeFi) space on Ethereum has been gaining traction since the past year, despite some projects having left the network amid expensive fees and slow transactions.

Nonetheless, the total value of digital assets locked on the Ethereum-based DeFi protocol increased by four percent this month, according to market data from CryptoRank.

$66 Billion Was Locked in Ethereum Protocol in May

Since this month, about $66.35 billion USD worth of cryptocurrencies has been locked on Ethereum DeFi space. An all-time high of over $88 billion USD was recorded on May 12 before the market began to plummet.

This record today represents about a four percent increase compared to the $63.70 billion USD TVL recorded last month. Compared to the past months since May 2020, this is the lowest TVL percentage increase in the Ethereum DeFi space, which can be attributed to the recent massive correction of the market. Bitcoin (BTC), Ethereum (ETH), and some other major altcoins dropped significantly in value, which affected the market capitalization of cryptos globally, including DeFi.

Meanwhile, on the year-over-year (YoY) chart, the total value locked in Ethereum-based DeFi protocols is up by over 7,104 percent, as per analysis by CryptoRank.

Gross TVL on Binance Smart Chain

Binance Smart Chain is possibly the main competitor of Ethereum for DeFi projects. As of 28 May, the total gross value locked in protocols on the Binance Smart Chain was $16.6 billion USD, according to data from The Block. PureSwap was rated as the largest protocol with over $23.69 million USD.