RATE Group | There’s now more Ethereum tied up in DeFi apps than ever before
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There’s now more Ethereum tied up in DeFi apps than ever before

29 Oct There’s now more Ethereum tied up in DeFi apps than ever before

Posted at 04:13h in Ethereum News by

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Adoption of a wider range of decentralized finance (DeFi) applications has pushed up the amount of Ethereum (ETH) currently being used by them. The total figure has reached an all-time high of 2.36 million ETH, according to DeFi pulse, worth $420 million.

DeFi apps allow you to lend money, borrow money or make a range of other financial agreements with strangers around the world, without a third party involved. Often, funds are required to be locked up as collateral—using tools known as smart contracts—in order to give both parties reassurance that they won’t lose out unfairly. As a result, these apps can end up with a lot of ETH locked up in them.

By locking up a bunch of ETH, this reduces the circulating supply—which, some argue, puts upwards pressure on the price. But more importantly, it shows that the mavericks building such protocols are not wasting their time, since people are actually using the apps.

MakerDAO has always been one of the most popular DeFi apps out there….

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