A contrasting week in the DeFi ecosystem has significantly raised the number of blocked funds in its top projects. For the week, the demand for decentralized finance increased by $1.5 billion total.
Two new entrant projects managed to break into the top 3.
As of August 11, the top project leaders in the decentralized finance system include the unchanged MakerDAO with a blocked volume of $1.46 billion, Compound Finance, with a blocked volume of $846 million and AAVE with a volume of $545 million.
MakerDAO, something of a “dinosaur” in the Defi space slowed its rapid growth after August 6. The company has now set a new record for blocked funds of $1.53 billion and drifts in the range of $1.47-1.5 billion as things stand.
Next up, AAVE Project increased its number of blocked funds to cross the $1 billion mark.
A look at the chart of this project for the last 30 days (below) shows the near vertical growth of blocked funds from August 14. It was from this day that MakerDAO began to lose some of its dominance.
Given that the two projects are involved in lending side of the space, we can assume that some users have changed their creditor.
In third place is the decentralized exchange Curvefinance, which closed out the week by increasing its number of blocked funds from $254 million to $1 billion in just three days.
57% of all blocked money is locked up in the top three Defi projects.
Compound Finance project, which specializes in lending assets to users, the liquidity of blocked funds has fallen by 18.5% and now is $742 million.
A quick note on ETH
The Ethereum price broke from the range $380-400 on 13-14 August. However, based on the above noted significant changes in the Defi space, investors will likely continue to trust Ethereum as the building blocs of their Defi projects, suggesting further strength.