$424M in ETH is Locked in DeFi Platforms, Can Tron (TRX) Catch Up?

In summary:

  • Decentralized Finance (DeFi) has blossomed in the last year as more projects utilize the Ethereum blockchain due to its smart-contract capabilities. 
  • Currently, there is over 2.7 Million ETH locked up in DeFi DApps.
  • Maker DAO transactions take up 49.36% of the ETH locked up in DeFi platforms.
  • Can Tron (TRX) exceed this with Just (JST)?

Decentralized Finance has been hailed as the best way of managing ‘money’ away from traditional banks and into the hands of DAOs (Decentralized Autonomous Organizations). The Ethereum (ETH) platform is thus the choice platform for many DeFi projects due to its popularity and smart contract capabilities.

2.7 Million Ethereum (ETH) Locked in DeFi Platforms

As a result of using the Ethereum network, ETH becomes the automatic choice when users put down collateral on these DeFi platforms. The team at DeFi Pulse has in turn, continually tracked the assets being utilized on DeFi. At the time of writing this 2.703 Million ETH is currently in use on these platforms with Maker DAO (MKR) transactions and activities making up 49.36% of this amount. Using the current rate of ETH at $157, the USD equivalent of the Ethereum coins locked up in all DeFi applications is $424.37 Million. Of this amount, $209.46 Million in Ethereum is being utilized on Maker’s platform.

$424M in ETH is Locked in DeFi Platforms, Can Tron (TRX) Catch Up? 19
ETH locked up in DeFi courtesy of DeFiPulse.com

Sudden Spike Down in the Amount of ETH in DeFi Platforms

Further analyzing the screenshot provided above, we note that the value of ETH locked up in DeFi platforms dropped drastically to a value of 1 Million ETH on April 6th before spiking back up. This fact was first observed by Twitter user @notgrubles. At the time of writing this, one plausible explanation could be a reporting bug. This has been highlighted by Twitter user @ViktorBunin in the following tweet.

Tron (TRX) Could Be Eyeing Similar Stats With its DeFi, Just (JST)

To note is that the first tweet by @notfrubles has a picture of Justin Sun photoshopped into the graph. This can be taken as a joke or the foreshadowing of the Tron (TRX) blockchain venturing into DeFi with its very own Just (JST) platform. The latter project is set to be launched by the Tron Foundation and will also be the first Token Sale on the new Poloniex LaunchBase crowdfunding platform. The Just token sale will take place on the 5th of May with Tron (TRX) being the only asset accepting for the crowdfunding efforts. TRX will also be the sole asset used as Collateral on Just.

Can Tron (TRX) Do Better?

Approximately $424 Million in ETH is being locked in Ethereum based DeFi platforms. However, the Tron (TRX) blockchain is about to release its very first DeFi platform known as Just (JST). The Tron blockchain has run flawlessly since its Mainnet was launched over 2 years ago. The platform also has very low transaction costs when compared to those on the Ethereum blockchain. Additionally, Tron can handle 748 transactions per second which faster than Ethereum’s 25 maximum tps.

By blockchain performance alone, Tron (TRX) could be set on a path to challenge Ethereum as the choice DeFi blockchain for many projects in the space. As a result, and with time, the value of TRX locked in DeFi applications on the Tron Blockchain, could equal or exceed that of ETH.

(Feature image courtesy of Joshua Golde on Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin61,883 0.29 % 1.54 % 13.11 %
Ethereum3,738.2 0.74 % 1.95 % 8.95 %
Binance Coin477.11 0.37 % 2.32 % 18.00 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Cardano2.120 0.60 % 1.74 % 3.47 %
XRP1.080 0.58 % 3.46 % 4.74 %
Solana156.14 0.91 % 2.61 % 5.72 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2534 0.02 % 7.04 % 10.53 %
USD Coin1.000 0.14 % 0.20 % 0.17 %

bitcoin
Bitcoin (BTC) $ 62,396.00
ethereum
Ethereum (ETH) $ 3,787.03
binance-coin
Binance Coin (BNB) $ 481.43
tether
Tether (USDT) $ 1.01
cardano
Cardano (ADA) $ 2.14
xrp
XRP (XRP) $ 1.09
solana
Solana (SOL) $ 157.66
polkadot
Polkadot (DOT) $ 41.35
dogecoin
Dogecoin (DOGE) $ 0.257993
usd-coin
USD Coin (USDC) $ 1.00