DeFi: Total Value Locked In Ethereum Defi Apps Crosses $1B As ETH Boosts Past $220

Defi

Decentralized Finance has been on a magnificent run in the past 12 months, breaking new all-time highs on the total value locked in USD (TVL) despite Ethereum’s rather poor performance through 2019. As the Ethereum (and part Bitcoin) communities celebrate the increased value locked in DeFi products –which set yet another all-time high, crossing the $1 billion USD milestone – it is the potential that the field holds that is well and truly frightening.

Total value locked (TVL) in DeFi grows to $1 Billion USD

2019 growth of DeFi products such as Maker, Compound, Synthetix and Uniswap saw the industry record a yearly high of $660 million USD in TVL (USD) around July’s market pump, after an impressive 172% increase since January 2019. The start of the year has been no different, the value locked in DeFi products has grown by 49.67% in 2020 to reach the $1 billion milestone.

Defipulse
Source: Defipulse

The boost in TVL in USD in DeFi products has followed the bullish movements in Ethereum’s market as the coin started off 2020 on the best possible start. As seen in the chart below, the amount of ETH locked on DeFi products has grown steadily through the year hitting a high of 3.2 million ETH at the end of January.

Read more >> Value locked in DeFi dapps May Surge to $100 Billion in 2020

Ethereum soars by 5% in the past 24 hours

The price of ETH against the dollar has been on a massive uptrend in the past 30 days, breaching $200, $210 and $220 resistance level in the early trading hours in the London market with the bulls targeting the psychological resistance at $250 USD before Bitcoin’s May halving. As at time of writing, ETH/USD is trading at $222.67 USD, representing a sharp 4.59% increase in the past 24 hours.

Source: TradingView

Looking at the daily candle charts, the market looks set to face a short term reversal in the near future despite the amazing growth in DeFi products. The price hangs loosely above the upper 20-day Bollinger Band (BB) which provides a near term resistance on price, with the middle band providing key support at $179 USD.

Total USD locked in staking platforms crosses $10 billion

In what has been one of the best starts of the months in over 2 years, not only the DeFi community were celebrating their recent milestone as the ‘stakers’ also jumped in crossing the $10 billion USD milestone in total value locked in staking platforms on Feb. 5

Source: Staking Rewards

Moreover, the long term charts signal a bearish reversal as the relative strength index (RSI) oscillates at high overbought levels at 81. However, with the market buzzing at the moment, with both staking protocols and DeFi breaching milestones, ETH’s future looks very bullish.

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