Title: unlock the power of decentralized financing (Defi): Understanding the overall value that is blocked as a key metric

Introduction

The growth of blockchain technology has produced a new era in the financing, which is known as a decentralized financing (Defi). Defi platforms enable loans, loans and trade with peer without the need for intermediaries so that people and institutions can manage their assets with greater security and efficiency. A decisive metric that emphasizes the potential defi is the total value of the total value (TVL), which measures the total value of the total value that is blocked in Defy protocols by transactions.

What is the entire blocked value?

The entire blocked value refers to the total value of the transferred or blocked value in a decentralized application (DAPP) or a protocol over a certain period of time. In other words, it is the cumulative amount of all transactions that have taken place within the platform or the network. This metric provides valuable information about the introduction and growth of Defi protocols.

Why is the entire blocked value important?

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

* Quantification of adoption

: TVL helps to quantify the level of introducing Defi platforms, which is essential for measuring its potential effects on the broader economy.

* Increase in monitoring : TVL serves as the key indicator of the growth of Defi, so that investors and market participants can evaluate whether a wealth class increases or is faced with a decline.

* Liquidity influence : With increasing TVL and the liquidity that is available for Defi protocols. This increased liquidity can lead to higher prices, which makes assets more attractive for investors.

Increase in the total blocking value

TVL recorded exceptional growth with some remarkable sights last year:

* 2020 : TVL reached 10 billion US dollars in 2020 and rose from US dollars in 2019.

* Q2 2021 : TVL exceeded over 100 million US dollars for the first time in T2 2021 and set a new record for Defi.

defy trends and predictions

Defi’s future is bright, with more tendencies and predictions that shape your trajectory:

* Increased acceptance : Wait for a continuous increase in adoption rates as several institutions enter the market.

* Regulatory elections : The regulatory environment remains an essential factor that determines the defect development.

* Expansion of liquidity : It is expected that improved liquidity of the Defy protocols is increasing, which makes it even more attractive to investors.

Diploma

The total blocking value is an important metric when understanding growth and the introduction of Defy protocols. Since the institutional investments continue to grow, TVL remains an essential indicator of industrial potential. By monitoring these critical key figures, market participants can better understand the opportunities and challenges that the space faces and finally make sound decisions about their investments.

Investor Alert

If you are considering investing in Defi protocols, note that TVL is only one aspect. Research in details that evaluated risk tolerance and advise a financial advisor before investing decisions are made.

Additional resources

More information about the entire blocked value and the Defi storage space can be found in the following resources:

* Coingecko

: The greatest exchange of cryptocurrencies through market capitalization.

* Coinmarketcap : A cryptocurrency data provider.

* Defi -credit : A platform that provides information about the lending protocols.