Explosive growth in demand for DeFi? Sometimes it may just be that the price of the currency has risen

Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Babbitt Information (ID: bitcoin8btc)

overview

• Babbitt Information (ID: bitcoin8btc)

• , by Liam Frost, translated by Wendy, published with permission.

• overview

According to DappRadar, 75% of the growth in DeFi is driven by the surge in token prices.

When the total value locked in DeFi increased by $800 million, the data-adjusted increase was only $200 million.

Experts believe that measuring DeFi by the total value locked can affect its perception.

The recent growth of Ethereum’s decentralized finance (DeFi) ecosystem may be grossly exaggerated, according to a report released Tuesday by decentralized application (dapp) tracker DappRadar.

One of the most commonly used metrics in the DeFi space is the dollar value locked (TVL). It details how much value is locked in applications in the DeFi space. These funds could be locked in lending apps, or provide liquidity to decentralized exchanges. This number has been growing rapidly.

In July, DeFi’s TVL hit $3 billion for the first time. A month later, that figure doubled to $6.3 billion. And it shows no sign of slowing down. However, DappRadar believes that the actual growth of DeFi is not that fast.

"75% of the total value locked is driven by the price of the token."

According to DappRadar, only 25% of the recent growth is due to money entering the industry.

DappRadar analyzed MakerDAO, MakerDAO is the top DeFi lending platform, TVL accounted for 24% (about 1.5 billion US dollars). DappRadar found that 97% of its TVL is locked in Ethereum (73%), Wrapped Bitcoin (8%) and its own governance token MKR (17%). Over the past month, all three tokens have seen notable price increases.