DeFi surpasses $7B in locked funds, but just six projects hold 90% of capital
Despite DeFi’s meteoric growth, only half a dozen projects represent more than 90% of the capital locked in the sector. The total value of capital locked in decentralized finance (DeFi) protocols has increased 271% in less than two months to surpass $7 billion for the first time, according to DeFi Pulse. If the current rate of growth continues, DeFi will be worth more than $27 billion by the end of 2020.
Aave currently comprises the largest DeFi project with $1.51 billion locked, followed by MakerDAO with $1.42 billion, Curve Finance with ss$1.15 billion, Yearn.finance with $845 million, Synthetic with $801 billion, and Compound representing $797 million.
Aave recently emerged as the top DeFi project after receiving an Electronic Money Institution license from the U.K Financial Conduct Authority, signaling the increasing legitimacy of the sector.
However, while DeFi’s aggressive growth trajectory has been fuelled by the recent rise of lending protocols that have disrupted Maker’s long-standing dominance over the space, just six protocols represent more than 90% of locked capital in the sector according to DeFi Pulse.
While numerous projects have quickly captured the imagination of the crypto community amid the 2020 DeFi bubble, few have been able to establish themselves and long-term leaders within the sector.
The recent dramatic rise and fall of Yam Finance offers a precautionary tale illuminating the potential severity of contract risk — with more than $750,000 worth of crypto being lost alongside the protocol’s collapse. DForce also suffered a multi-million dollar hack in April, however, the stolen funds were returned by the hacker and given back to investors.
Industry leaders have warned of over-exuberant bullishness in the DeFi sector, with Compound founder Robert Leshner recently tweeting:
Earlier this month, Ethereum co-creator Vitalik Buterin also wrote, “you do not have to participate in ‘the latest hot defi thing’ to be in Ethereum. In fact, unless you really understand what’s going on, it’s likely best to sit out or participate only with very small amounts.”
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 85.2% | 25 | $58 212.93 | -2.74% | 2.96% | $1 149 991 835 476 |  |
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|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 76.8% | 46 | $2 306.12 | -3.33% | -1.66% | $277 517 977 475 |  |
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| 3 |  USDT |
Tether predictions | 91.6% | 1 | $0.999674 | -0.05% | -0.04% | $118 746 447 563 |  |
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| 4 |  BNB |
Binance Coin predictions | 79.6% | 33 | $535.38 | -3.78% | 3.59% | $78 130 067 520 |  |
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| 5 |  SOL |
Solana predictions | 74.8% | 41 | $131.04 | -1.88% | -1.52% | $61 355 258 435 |  |
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| 6 |  USDC |
USD Coin predictions | 91.6% | 1 | $0.999925 | 0% | -0.01% | $35 603 266 724 |  |
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| 7 |  XRP |
XRP predictions | 76.4% | 37 | $0.579741 | -1.22% | 8.17% | $32 689 314 282 |  |
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| 8 |  DOGE |
Dogecoin predictions | 83.6% | 28 | $0.099815 | -5.28% | -3.49% | $14 571 279 977 |  |
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| 9 |  TON |
Toncoin predictions | 72.4% | 59 | $5.42 | -3.35% | 4.82% | $13 737 152 570 |  |
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| 10 |  TRX |
TRON predictions | 86.8% | 23 | $0.148564 | -0.28% | -3.82% | $12 879 108 076 |  |
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| 11 |  ADA |
Cardano predictions | 78.4% | 35 | $0.330572 | -3.88% | -3.76% | $11 887 575 348 |  |
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| 12 |  STETH |
Lido stETH predictions | 94% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |  |
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| 13 |  WTRX |
Wrapped TRON predictions | 92% | 1 | $0.116354 | -0.46% | 0.23% | $10 171 995 609 |  |
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| 14 |  WBTC |
Wrapped Bitcoin predictions | 94.8% | 1 | $65 806.83 | 0.78% | -2.68% | $10 083 957 608 |  |
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| 15 |  AVAX |
Avalanche predictions | 72% | 52 | $23.50 | -3.94% | -2.49% | $9 536 183 213 |  |
