Available data from Defi Llama has shown that the total value locked (TVL) in DeFi has reached a new all-time high due to the influx of funds in interoperability-focused projects that are offering cross-chain bridges and lucrative liquidity mining pools. According to the data, the TVL in Defi now stands at $157.06 billion as of August 22.
This is notable considering the fact that Defi TVL stood around $1 billion in 2020. It also shows that the level of adoption of the space has grown from what it used to be in the past.
The new Defi high is also an indication that the industry is growing at its own pace. When Defi TVL reached its previous ATH, Ethereum and Bitcoin, the two largest crypto assets by market cap, were on a surge and they both had reached new peaks. However, the value of both digital coins have dropped dramatically and they are far below their ATH. Regardless of this, projects in Defi have been able to beat their own record.
Investors’ interest have been drawn to projects like Uniswap (UNI), SushiSwap (SUSHI), PancakeSwap. These projects are known for performing multiple roles within the ecosystem and the crypto industry at large.
In the last 30 days, several DeFi tokens raked in more than 20 percent gains with some of them seeing gains that went as high as 115 percent. Bancor (BNT) and THORChain (RUNE), for instance, are projects who saw gains above the average seen by other Defi projects.
While Ethereum high gas fees remains an issue for projects in the ecosystem, alternatives like Avalanche (AVAX) and the growth of projects like DinoSwap has played a role in helping the space remain fresh. The two aforementioned projects for example have seen new users troop to them because they are able to offer “reduced transaction costs and faster processing times through their cross-chain bridges.”