Title: Unlocking the power of decentralized finance (Defi): understanding of the total value blocked as a key metric

Introduction

The rise of blockchain technology has given birth to a new era in finance, known as decentralized finance (Defi). The DIFI platforms allow for peer-to-peer loans, loans and negotiations without the need for intermediaries, allowing individuals and institutions to manage their activities with greater safety and efficiency. A crucial metric that highlights Defi’s potential is the total blocked value (TVL), which measures the total quantity of value blocked in defii protocols through transactions.

What is the total blocked value?

The total blocked value refers to the total quantity of value transferred or blocked in a decentralized application (APP) or in a protocol for a certain period. In other words, it is the cumulative sum of all transactions that have taken place within the platform or the network. This metric provides valuable information on the adoption and growth of the Defi protocols.

Why is the total value blocked important?

The value blocked in the Defi protocols has become increasingly significant in recent months due to an increase in institutional investments and a growing user base. Here are some reasons why TVL is crucial:

* Quantification of adoption : Tvl helps to quantify the level of adoption of DIFI platforms, which is essential to measure their potential impact on the wider economy.

* Growth monitoring : TVL acts as a key indicator of the growth in Defi, allowing investors and participants to the market to evaluate whether a class of activity is increasing or in front of a decline.

* Influence of liquidity : As a TVL increases, the liquidity available for the Defi protocols also increases. This greater liquidity can bring to higher prices, making the activities more attractive for investors.

The rise of the total value blocked

Tvl has seen a huge growth in the last year, with some remarkable goals:

* 2020 : Tvl reached $ 10 billion in 2020, compared to $ 1.5 billion in 2019.

* Q2 2021 : TVL has exceeded $ 100 million for the first time in the second quarter 2021, setting a new record for Defi.

DEFI Trends and Forecasts

Defi’s future is bright, with different trends and forecasts that shape its trajectory:

* Increase in adoption : expect continuous growth in adoption rates when multiple institutions enter the market.

* Regulatory scrupting

: the regulatory environment will remain a significant factor that guides Difi’s development.

* Liquidity expansion : it is expected that better liquidity on the Defi protocols will increase, making them even more attractive for investors.

Conclusion

The total blocked value is a vital metric to understand the growth and adoption of the Difi protocols. As institutional investments continue to guide growth, Tvl will remain an essential indicator of the sector potential. By monitoring this critical metric, market participants can better understand the opportunities and challenges for the Defi space, ultimately making informed decisions on their investments.

Investor warning

If you are thinking of investing in Defi protocols, keep in mind that TVL is just an aspect to consider. Search carefully, evaluate risk tolerance and consult a financial consultant before making any investment decision.

Additional resources

For more information on the total value blocked and on the Defi space, consult these resources:

* Coingecko : the greatest exchange of cryptocurrency by market capitalization.

* COINMARKETCAP : One of the main Cryptocurrency Data Suppliers.

* Defi Lending : a platform that provides insights on loan protocols.

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