Amount Of Ether Locked In DeFi Is Falling, Even As Total Value Locked In Continues To Climb
While the amount of crypto assets locked in DeFi continues to climb, the amount of ETH locked in is on the decline, as reported by Decrypt.
On November 21, value locked in DeFi reached an all-time-high of $14.39 billion. Meanwhile, the prices of both Ethereum and Bitcoin have continued to rally with Bitcoin nearing its all-time-high price of $20,000. Over this same time period, the amount of Etheruem locked in DeFi protocols has declined by 2 million while Bitcoin locked in has remained steady, data from DeFi Pulse shows.
ETH locked in DeFi applications reached 9.25 million on October 20, but since then has fallen more than 25%. The fall in Etheruem investments in DeFi could be due to the impending Ethereum 2.0 launch. The launch requires 525,000 ETH to be sent to a deposit address before taking off, which could be diverting ETH funds from DeFi into the mainnet contract.
By Emily Mason