In brief:
- 9.2 Million Ethereum or 8.2% of ETH’s circulating supply is locked in DeFi
- Majority of the Ethereum is locked in the five protocols of Maker, Compound, SushiSwap, Uniswap and Aave
- If the ETH 2.0 deposit contract was considered as DeFi, there would be a total of 12.756 Million Ethereum locked making up 11% of the circulating supply
The DeFi realm continues to grow every day with the total value locked hovering back at $45 billion. Of this amount, 9.2 million Ethereum ($17 Billion) is locked in the various DeFi protocols. This amount of Ethereum constitutes roughly 8.2% of Ethereum’s circulating supply as pointed out by the team at Bloqport Insights through the following tweet.
According to DefiPulse, 9.2 million Ether—around 8.2% of the circulating $ETH supply—is now locked in the DeFi ecosystem. pic.twitter.com/bdb5NVWEKK
— Bloqport Insights (@Bloqbot) March 19, 2021
Maker, Compound, SushiSwap, Uniswap and Aave Dominate in Amount of ETH locked
Taking a second look at data from DeFiPulse.com reveals that the majority of the 9.2 million Ethereum is locked in the five DeFi protocols of Maker, Compound, SushiSwap, Uniswap and Aave. The following screenshot, courtesy of the tracking website, further demonstrates this fact.
Ethereum 2.0 Deposit Contract Would Top the List
A quick glance at the Ethereum 2.0 deposit contract reveals that a total of 3.556 million ETH is currently locked in anticipation for staking. This amount of Ethereum tops the list above thus making ETH 2.0 a top contender in DeFi once investors start to view it as such.
Adding the 3.556 million ETH to the 9.2 million already locked in DeFi brings the total to 12.756 million or roughly 11% of Ethereum’s circulating supply.
More Ethereum Locked Means ETH’s Value Will Probably Increase
The calculations above are crucial in giving a numerical picture of the amount of Ethereum currently unavailable for regular trading. In an earlier analysis, it was pointed out that Ethereum reserves on exchanges are on a downward trajectory and this has been proven using the numbers above.
$2k in March Might Be a Struggle for Ethereum
Ethereum is once again trading above the $1,800 support zone that could catapult it above $2k if the current environment allows. However, with its current value of $1,850 and with roughly 24 hours towards the weekly close, selling pressure during the latter event might put a dent at the prospects of $2k this week.
Perhaps this price ceiling will be achieved with the new week but if Bitcoin takes a dip due to futures and options expiry on Friday, Ethereum might just see $2k with the new month of April.