In the last few days, there has been significant growth in the total value locked (TVL) in platforms part of the decentralize finance (DeFi) ecosystem and the market cap of the top tokens on smart contract platforms. On June 19th, there been a decline in the TVL of the DeFi space to its lowest in 2022 at $70 billion, but since then, it has recorded an increase of $17 billion.
Meanwhile, the last week saw the fiat values of Ethereum and Ethereum classic go up, as the two tokens lead the pack of smart contract platform tokens with gains in double-digits.
ETH and ETC
It appears that money is once more flowing back into the DeFi ecosystem and the smart contract platform token economy. There was a 6.9% rise in the value of top tokens of smart contract platforms in the last 24 hours at the time of writing, which took them to a value of $336 billion.
There were double-digit gains recorded in the values of Etherem (ETH) and Ethereum Classic (ETC). It is believed that both crypto tokens were able to see their values rise because of the date of The Merge drawing closer, which marks the transition of the Ethereum blockchain from a proof-of-work (PoW) algorithm to a proof-of-stake (PoS) one.
In the last week, there was a 33.9% gain recorded in Ethereum, while a 73.9% gain was also seen in Ethereum Classic. Once The Merge is complete, Ethereum will become a PoS system from a PoW one and this means that miners using the latter algorithm would be forced to mine other crypto assets using the Ethash algorithm. This is the Ethereum Classic (ETC) token, due to which its price rose. The gains in these two tokens also boosted the value of others as well.
DeFi also sees a rise
As far as the TVL (total value locked) in platforms part of the decentralized finance (DeFi) ecosystem are concerned, it also recorded an increase of $87.02 billion. In 24 hours, there was an increase in TVL of about 2.87%. This means that the TVL has increased by $17 billion since its value on June 19th.
9.89% of the TVL belongs to Makerdao, which recorded an increase of 10.7% in a week and its value is around $8.61 billion. Lido is the second-largest protocol in the ecosystem in terms of its TVL and it went up by 31.83% to reach $6.96 billion.
As far as the aggregate $87 billion funds are concerned, 64.33% of them are locked in DeFi protocols that are based on the Ethereum blockchain, as their total is about $55.62 billion. 7.72% of it belongs to the Binance Smart Chain, which is around $6.68 million. The third position goes to Tron, which has a TVL of $5.88 billion or 6.8%.
The total value locked in cross-chain bridges that allow people to access the protocols in the DeFi ecosystem was around $8.75 billion, which is a decline of 60.4% in the last four months.