This article provides an overview of how three important projects in the decentralized finance (DeFi) space — Aave (LEND), Compound (COMP), and Synthetix — have been doing over the past 24-hour period, covers recent news that might have affected their tokens (or might do so in the future), and looks at interesting tweets about these projects/cryptoassets from prominent members of the crypto community.
According to data by DeFi Pulse, currently (as of 12:50 UTC on June 22), these are the 10 DeFi projects by Total Value Locked (TVL):
The three DeFi projects we will will look at here occupy four out of the top five positions in this table.
In an excellent blog post published on 13 February 2020, crypto researcher Jack Purdy explained why TVL is such an important metric in the world of DeFi:
“Since most applications require capital to be deposited, often in the form of loan collateral or liquidity in a trading pool, it has been used as the de facto metric to show the growth of decentralized finance.”
Purdy also pointed out that although “the growth in TVL is a positive sign for the burgeoning world of DeFi”, it is worth remembering that “this figure is highly reliant on the price of ETH”.
To understand this better, let’s compare TVL (USD) with TVL (ETH) across all DeFi projects for the past 90 days: