Ether Locked Into DeFi Hits a Record of 3 Million ETH

Neil Dennis

The total value of ether locked into decentralized finance (DeFi) dApps has passed 3 million ETH ($552 million) for the first time, according to data on DeFi Pulse.

Of this total, more than half - 1.6 million ETH - is locked into the MakerDAO dApp, the top DeFi decentralized application on the Ethereum blockchain, and a core component of the Dai Stablecoin System, which allows users to leverage their Ethereum assets to generate dai tokens.

Ether is, by far, the dominant cryptocurrency used in DeFi apps. By comparison, bitcoin currently has just 1,400 BTC locked into DeFi thanks to the Lightning Network - worth $11.6 million at current prices.

Growth of DeFi

DeFi is still in its infancy, but an ever-growing array of financial tools are becoming available from an increasing array of platforms on the Ethereum network that enable services such as instant transaction and settlement, exchange-free lending and borrowing of digital assets, and collateralization. All of these services require no middlemen or central authority, making them cheaper and more reliable.

The top three Ethereum dApps by total value locked are:

  • MakerDAO - the Dai Stablecoin collateralization system, with 1.6 million ETH locked
  • Compound.finance - the crypto lending and borrowing platform, with 607,300 ETH locked
  • Synthetix - for creating synthetic assets, with 331,600 ETH locked

 

Featured Image Credit: Photo via Pixabay.com

Argentina’s Smallest Currency Denomination Now Worth Only One Satoshi

Michael LaVere
  • Argentina's smallest currency denomination, the centavo, is now worth one satoshi.
  • The country is in the midst of a currency crisis, with the inflation rate reaching 50 percent. 

Argentina’s smallest unit of currency has slumped in value to now be worth the equivalent of one satoshi. 

The Centavo, which has been in circulation since 1854, has joined the Lebanese Lira and Vietnamese Dong in being the same value as the smallest denomination for bitcoin. 

The currency’s fall in value was noted by Argentinian Reddit user u/OneMoreJuan, who used the Centavo’s plight as an example to invest in bitcoin. Another user in the comments claimed that scrap material for the Centavo was now worth more than the coin itself.

Argentina is one of several South American countries to undergo hyperinflation and currency crisis in recent years, with the government defaulting on its loans a record nine times. The country entered its third year of recession prior to the start of the coronavirus pandemic, after undergoing an economic crisis that first began in 2018. 

According to a report by Bloomberg, Argentina’s inflation has outpaced expectations, with the current rate reaching roughly 50 percent. 

Argentinians have responded to the devalued fiat by turning to bitcoin and crypto-assets in droves. Data aggregator Coindance shows a significant spike in weekly LocalBitcoins volume for Argentinian customers since the start of the year, reaching as high as $70 million in May.

Featured Image Credit: Photo via Pixabay.com