NFTs dominated the first two months of 2021. Everyone wanted a piece of the cake, and this saw some NFTs sell for millions, the highest being a $69 million digital art. This NFT gold rush led to a slowdown in one of the strong aspects of the market, DeFi.
However, with NFTs hype dying down, the focus is back on DeFi, which is evident in the growing adoption of the DeFi project Compound. As of today, Compound’s total value locked has shot up to $10 billion. It is a huge milestone considering that no other DeFi project has ever hit this valuation.
Compound attained this value after months of growth. The project started in 2021 with a total value locked of $2 billion, and its current valuation is a 5X increase in total assets staked. The same is quite evident in the project’s price. Comp started the year at $150 and is currently trading at $454.09.
Besides Compound, other DeFi projects have been gaining traction too, an indicator that the DeFi market is back. According to DeFi Pulse data, the total value locked across all DeFi projects is now at a record high of $52.6 billion. This indicates a 350% increase in value since the beginning of the year. Of this, the largest projects, namely Compound, Aave, and Maker, lead the way with 45.8% of the total value locked.
DeFi is also being driven by its adoption by big money investors. Recently billionaire Mark Cuban stated that he had AAVE in his portfolio, which sent the project skyrocketing to over $500.