Total value locked in DeFi and Ethereum L2 scaling solutions hits all-time high

decentralized finance market (DeFi) passed a new milestone reaching an all-time high of $ 106.9 billion in early November. Tier 2 scaling solutions are also seeing tremendous growth, with an all-time highest fixed value of $ 4.93 billion recorded concurrently.

DeFi market shows no signs of abating as the total locked value reached a new all-time high, reaching $ 106.9 billion on November 3, 2021. new record marks fairly steady growth throughout the year, supported by numerous new developments and releases related to NFT.

Total value locked in DeFi (USD): DeFi Pulse

DeFi continues to self-transport

arrival of DeFi has caused a stir in the market, and many regulators and traditional financial sectors have become aware of the new financial ecosystem. niche allows investors to lend and borrow assets, invest in tokenized versions of real-world assets, derivatives, and more, overseen by the trustless power of smart contracts.

decentralized financial market is currently dominated by Convex Finance, Yearn.Finance, and Rari Capital, which have $ 9.6 billion, $ 4.7 billion, and $ 1.3 billion locked up respectively. Convex Finance is one of the new players in the market.

Ethereum, which is the foundation of the vast majority of the DeFi market, has also grown alongside the DeFi market. However, scalability has been a thorn in the side of the network, as investors scold the fees and transaction times that sometimes influence their decisions.

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Ethereum is working on its own solution, ETH 2.0, which is being phased out and which will see fragmentation introduced in the near future. Meanwhile, many other projects are working on solutions that will address this problem and unlock the DeFi market.

total value locked in L2 also reaches ATH

Accompanying DeFi’s growth is the highest value locked in Tier 2 scaling solutions such as Arbitrum, Loopring, and Optimistic Ethereum. Tier 2 scaling solutions provide much higher transaction throughput and negligible transaction fees, a necessity with the increasing adoption of DeFi platforms.

Total Locked Value (USD): L2BEAT

total value locked in Tier 2 solutions has reached an impressive $ 4.93 billion, compared to $ 800 million in early September 2021. dramatic increase in Tier 2 scale value suggests an imminent shift to large scale to these solutions. Among the designs used by these projects are Optimistic Rollups, ZK Rollups and Plasma.

Using Tier 1 for DeFi has resulted in gas rates that can exceed the $ 100 mark, which can be a barrier for many investors. This has been a frequent complaint from market investors, and several projects have successfully launched solutions with great relief.


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