The Decentralized Finance (DeFi) business, which is gaining increasing importance as a viable alternative to conventional financial services providers, had phenomenal growth in 2021 with far more individuals participating than it has ever been. As a result of the rising usage of DeFi protocols, the total value locked (TVL) in the industry is expected to increase by over 1,200% by 2021. The total worth of assets placed in DeFi applications is represented by the TVL. The DeFi Industry is now valued at more than $240 billion.
On January 1, 2021, the Total Value Locked in the DeFi sector was pegged at 18.71 billion, which was the maximum allowed. As more individuals were interested in taking advantage of the decentralized lending, borrowing, derivatives, insuring, and cryptocurrency advisory services provided by DeFi protocols, the sector saw rapid growth.
The total value of the DeFi industry’s TVL has increased by over 1,200% year-to-date, surpassing $247 billion. The Ethereum blockchain, as the DeFi’s creator and promoter, hosts the most, a total of $153.82 billion and 376 DeFi protocols. Terra continues to be the most significant surprise of 2021. Terra, which entered the market in the middle 2021, is currently the second-largest DeFi chain in the world, with a TVL of $18.2 billion inust 14 protocols.
The Binance Smart Chain, which has 252 protocols and a total market capitalization of $16.7 billion, claims the third spot. Avalanche follows suit with a TVL of $11.89 billion. This is followed by Solana with a TVL of $11.48 billion.
On the other hand, “A series of hacking incidents have plagued the DeFi sector,” says the author. “In the period between January and November, over $12 billion was swindled.”
If the DeFi industry’s susceptibility to hacking is solved, analysts predict it will expand even more prominently in the next years.
