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According to the statistics gathered by DeFi Pulse, Bitcoin’s historic rise helped surpass the value of assets utilized in decentralized finance (DeFi) above $100 billion for the first time.
DeFi Pulse calculates the amount by multiplying the balance of Ether and other assets stored in smart contracts resolved on the Ethereum blockchain by their dollar value.
For the First Time, DeFi Surpasses $100 Billion
The name DeFi is an abbreviation for ‘decentralized finance’ and it is said to have first appeared in August 2019.
DeFi protocols are typically based on public blockchains like Ethereum, which serve as the foundation for new financial systems managed by thousands of nodes.
These nodes are machines that operate the blockchain software and are located all over the world.
According to DeFi Pulse, lending on cryptocurrency platforms increased 14.9% from the previous week to $50.7 billion. The number of cryptocurrency exchange transactions on DeFi networks increased by 8.6%.
The number of Bitcoins utilized in decentralized finance increased by 8% to 209,575 from 194,130 the previous week. The amount of Ether consumed has grown by 3.5%.
Earlier today, Bitcoin rose 4.5% to a new high of $66,976. Ethereum increased by up to 8%.
DeFi Is Currently Equivalent to Top 40 Banks in the US
According to Wikipedia, TVL in DeFi is currently the equivalent of the 40th-largest bank in the United States, with $100 billion in assets, sandwiched between Silicon Valley Bank's $97 billion and BBVA USA's $103 billion.
Some noteworthy names likely to fall in the next months include Deutsche Bank, which is now ranked 38th with $119 billion, and Credit Suisse, which is ranked 35th with $124 billion.
DeFi would have to surpass JPMorgan's $3.2 trillion to become the equivalent of the largest US bank, and then the Industrial and Commercial Bank of China's $4.3 trillion to become the world's largest.
According to Chris Spadafora of BadgerDAO, the $100 billion is simply the first stage towards a much greater growth that is in the future.