According to the TradingView index, the market capitalization of decentralized finance has reached a new all-time high of $145.5 billion dollars. The previous ATH was reached in May, when Ethereum’s price also peaked at $4,170.
According to CoinMarketCap, the largest DeFi project by market capitalization is still Uniswap, which has a market cap of $18 billion and a total value locked in smart contracts of $5 billion. The total amount locked in remains at $134 billion. Previously, U.Today reported that the SEC is looking into Uniswap.
Total value locked generally determines investor and trader sentiment toward the DeFi market and products. When market participants leave funds in smart contracts, they are leaning toward preserving their funds rather than profiting and exiting the market.
Various DeFi tokens, such as UNI and AAVE, have grown by 44 and 33 percent in the last month alone. Increased transaction volume on the Ethereum network, as well as newly introduced features added to the network following the London upgrade, may have a significant impact on the current DeFi market.
A decentralized finance network is a collection of open source software and frameworks that work together to provide financial solutions to users without the involvement of a third party. Users of DeFi platforms such as Uniswap can earn passive income by lending their funds or providing liquidity on the market. The DeFi platform relies heavily on Liquidity Pools to avoid the traditional market-making system, which relies on Market Makers—protocols or individuals who provide liquidity to trading pairs.