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BTC and ETH gains increased the total amount blocked in DeFi

Cryptocurrency

Total Bitcoin and Ethereum held on DeFi protocols exceeded $ 14 billion

The total amount blocked in DeFi reached new heights thanks to the rise in cryptocurrency prices on the rise. The total blocked value (TVL) almost reached $ 14 billion on November 14, but a sharp drop brought it down to $ 13.47 billion two days later. A week later, on November 21, TVL reached $ 14 billion before hitting $ 14.39 billion the next day.

That number has since declined slightly to current levels of $ 14.3 billion. The increase in the total blocked value was driven by the increase in the price of Bitcoin and Ethereum in recent days. Ethereum had the biggest jump in its price, rising 54% since the beginning of the month. In the same period, Bitcoin registered a price increase of 34%.

However, there is something that obscures the growth of TVL. The number of Ethereum maintained on DeFi protocols has dropped and is currently 25% less than last month. DeFi Pulse estimates that more than two million ETH have left the DeFi sector. However, the number of Bitcoins in the DeFi ecosystem has remained almost the same, going from 164,500 on October 20 to the current 168,500.

The outflow of ETH is probably the result of the movement of investors to support the next launch of the Ethereum 2.0 network. These investors may have withdrawn their DeFi deposits to activate Ethereum’s most ambitious update, hence the downturn.

Ethereum 2.0, scheduled for release on December 1, required that about 525,000 ETH be sent to a deposit agreement address. That goal was reached yesterday, after more than 150,000 ETHs were injected in 24 hours.

There is also the possibility that DeFi users may feel the need to be more careful with their crypto assets, as many hacks are being reported. Only in November, the DeFi, Value DeFi and Akropolis projects were exploited by hackers. Pickle Finance was also hacked, losing millions with the incident. In late October, Harvest Finance suffered a loss of more than $ 34 million in another incident. Afraid of these hacks, DeFi users may have decided to withdraw some of their assets.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.