According to DeFiPulse.com, the total value locked in the DeFi market now exceeds $2.13 billion.
At the time, the unexpected plunge in the price of Ethereum to below $100 led many DeFi contracts to become liquidated.
The DeFi market has rallied, consistently achieving new all-time highs.
Why is Ethereum's DeFi market seeing such explosive growth?
The DeFi market's rapid expansion kickstarted in June when Ethereum-based protocol Compound released its COMP token.
That led the Ethereum DeFi market to explode within a short period.
"Currently there's around $25 million of tokens being distributed every month through yield farming opportunities on DeFi It's proven to be an incredibly effective mechanism for building liquidity."
The researcher further emphasized that the incentive mechanism implemented by protocols within the Ethereum-based DeFi space is not new.
In the longer-term, the question remains whether the DeFi market can sustain its current rate of growth.
The combined market capitalization of all DeFi tokens remains below $7.5 billion.
How the Ethereum DeFi market just blasted past $2 billion to a record high
Published on Jul 9, 2020
by Cryptoslate | Published on Coinage
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