As Bitcoin (BTC) continues to push past local resistances to reclaim its all-time high, the growth of the DeFi market has also been one of the major factors behind this rally. In just two months, total bitcoin locked in DeFi more than quadrupled from 4,975 to 20,610 BTC, as the total value locked in DeFi has surpassed $4 billion once again.
Back in 2017, when BTC touched the $20,000 region for the first time, the DeFi market was non-existent. However, this time analysts believe the BTC rally will be much bigger than what we saw before because of the much more mature market and the presence of a strong DeFi market.
In less than two weeks, the DeFi market added more than $1 billion to its total value. Most of the DeFi protocols saw a massive surge in value with Crypto loan protocol Maker leading, with almost $600 million in value-added since July 21.
Both BTC and Maker’s stablecoin DAI, saw massive growth in value since July 23, with BTC surging 86% and DAI surging 414%. This pushed the total value locked in Maker to $1.2 billion, making it a 30% shareholder of the entire market.
Aave, another lending protocol, almost doubled in value since July 18, adding nearly $490 million to the total value locked.
The project just released its plan for distributed governance at a time when synthetic asset protocol Synthetix is initiating its three-way DAO governance scheme.
Token swap protocol Curve.finance, a popular yield farming destination, saw more than 250% n growth since July 17, currently has $281 million locked up in its smart contracts.
The massive growth of the market was mainly due to more than 5,000 Bitcoin ($58 million) to the Ethereum DeFi ecosystem.
The total value of BTC locked in wrap-ups like WBTC and Synthetix sBTC has grown more than 30% since July 21.
It is interesting to note that the journey from $2 billion to $3 billion took three weeks. But, the move from $3 billion to $4 billion took less than two weeks. The pace at which the market is accelerating seems to be quite interesting.
The same has been noted for both Bitcoin and Ethereum, as the price of both the tokens surged more in the last two weeks, that it did throughout the month before.
This goes to show how the overall appetite for the crypto market is growing at a rapid pace. As of now, both the markets are expected to move higher in the coming weeks.