New milestones were achieved across the digital currency ecosystem in 2021, a growth that was translated into Decentralized Finance (DeFi) sub-niche.
According to data from DeFiLlama, the DeFi ecosystem, encompassing the top blockchain networks saw a massive growth surge from $18.71 billion in Total Value Locked (TVL) as of January 1 this year to $258.58 billion it is pegged at as of today.
This growth pace which represented a 1,282% upshot within the space of 12 months showcases the increasing advances in the DeFi world. New projects emerged in the digital currency ecosystem that heralded the emergence of several innovative DApps and smart contracts.
The DeFiLlama data showcases the split in various protocols that make up the DeFi ecosystem. Curve Finance takes the largest cut in the pie with over $23.4 billion in TVL across multiple networks. Ethereum centred Convex Finance and MakerDAO occupy the second and third positions with $19.36 billion and $19.18 billion respectively.
Over the course of the past year, three major protocols, Solana, Avalanche, and Terra have all surmounted expectations with the pace at which new smart contracts are proliferated on their platforms. The protocols themselves have also impressed investors with their offerings, further boosting the overall adoption across the board.
Apart from Ethereum-focused protocols, Anchor Finance, a Terra native money market service provider occupies the 10th position as the largest contributor to the broader DeFi TVL with $8.98 billion in TVL.
The digital currency ecosystem has seen a fair number of trends come and go since its inception, and despite its newness, the sub-niche is still showing great potential for future growth. The broader cryptocurrency industry has recorded a massive correction this year, and this has in no way impacted the growth rate of the DeFi ecosystem. This amongst other pointers with backing data showcases the DeFi world is on track to record even greater growth in the near future.
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