The amount of crypto locked in decentralized finance (DeFi) has continued to climb over the last two weeks, despite the price for bitcoin and altcoins falling.
DeFi Market Lockup
According to metrics compiled by DeFi Pulse, the total value locked in decentralized finance grew from $512 million on Sept. 13 to a peak of $608 million on Sept. 19, constituting an 18.7% increase. The increase in valuation rose alongside the price of ether, which leapt from $180 to $220 during the same time frame. Ether is the primary currency used in decentralized finance, with nearly 3 million ETH locked away.
However, the total valuation for DeFi plummeted over the last week, falling to $475 million as ethereum dipped to $160 and bitcoin dipped below $8,000 for the first time in months. Nonetheless, DeFi investors have continued to lock coins into the marketplace, despite the falling total valuation.
While the price of ETH plunged on Sept. 24, there has been an inverse trend forming in the amount of ether locked in DeFi projects. Total ether rose from 2.77 million ETH on Sept. 23 to 2.97 million on Sept. 26. Bitcoin, which is represented in DeFi via Wrapped Bitcoin (WBTC) and the Lightning Network, saw only a minuscule bump in BTC locked away. Ether locked in DeFi 30 days | Source: DeFi Pulse
Some analysts are speculating that the increase in ether could be related to users creating new contracts go long or short on the crypto markets.
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