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$100 Billion Frozen in DeFi: Ethereum Dominates the Market
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$100 Billion Frozen in DeFi: Ethereum Dominates the Market

Mar 13, 2024

The total amount of funds locked in the decentralized finance (DeFi) ecosystem has reached a new significant milestone, surpassing $100 billion. This significant event reflects investors' growing trust in the DeFi sector, as more and more people prefer to store their assets on decentralized platforms, moving away from traditional financial institutions. Since January 2024, the DeFi sector has shown impressive growth of 44%, increasing from $56 billion to $100 billion, although it has not reached the previous record of $189 billion set in May 2022.

Ethereum continues to dominate the DeFi space, controlling assets worth $56.3 billion. This underscores its leading role as a platform for smart contracts and various decentralized applications (dApps), ranging from games and identification protocols to digital artworks and stablecoins. Lido is currently the leading protocol in the DeFi segment, controlling assets worth $39 billion, which constitutes 39% of the total TVL in DeFi.

However, the new protocol EigenLayer, also deployed on the Ethereum platform, offers an innovative approach known as "restaking," which allows users to use their ETH on multiple platforms simultaneously, thereby enhancing the security of these networks. This approach significantly increases the resilience of small and emerging blockchains, using the reliable security system of Ethereum. The volume of funds locked in the EigenLayer protocol has significantly increased, surpassing $11 billion in the last 30 days, highlighting its growing popularity and potential to change the DeFi landscape.

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