Decentralized Finance, or DeFi, is gaining traction in the industry and taking the crypto world by storm. According to DeFi tracking platform DeFi Pulse, the amount of ether (ETH) currently locked up in DeFi projects has hit a 90-day high, owing largely to the rise in decentralized loan platforms.
DeFi Pulse revealed that the amount of ETH locked in projects now amounts to over 2.13 million ETH (approx. US$379 million at the time of this report). In June 2019, the figure was approximately 1.8 million ETH.
Currently, the combined amount of ether locked into the top three loan platforms — MakerDao, Compound, and InstaDapp — has topped 1.8 million ETH. This means that users of the platforms have made them inaccessible for various purposes through the use of smart contracts. For platforms like MakerDAO, developer of the stablecoin DAI, ETH can be used as collateral to take out a loan and is, therefore, locked up for the duration of the loan.
As more ETH is locked up and reduces supply in the market, crypto traders are becoming increasingly confident and taking long positions on the virtual currency. The greater use of ether in smart contracts has also been taken as an indicator of greater real-world use of cryptocurrency in general.
MakerDAO currently holds the most ETH at nearly two-thirds of all ether that is locked up at 1.4 million ETH (approx. US$249 million).
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