LONDON (Bywire News) - There is a famous saying: follow the money – so what happens if we apply that to DeFi? Exactly how much cash is locked up in the blockchain? DeFi has been expanding since 2020 growing to a multi-billion-dollar industry. With the blockchain coming of age, this is likely to expand further in the future. The question is: how much?
One thing which is often taken into consideration when evaluating the power of a blockchain in the De-Fi ecosystem is the total value lock (TFL). This represents how many dollars worth of crypto are locked up in a particular blockchain.
TFL helps us ‘follow the money’ in that it guides us in our understanding of which blockchains and protocols are seeing the greatest investment. When it comes to EOS, how much money is there currently in DeFi within the network?
To answer that, we first must start with a few premises and look at the various funds staked between EOS protocols. This shows that not only are users exploiting the system/protocol, but they are also willing to invest and stake their money.
This brings us to the first figure we need to consider – that of the various decentralised applications (dApps) which are on the EOS public blockchain. These total more than USD$90 million with the Defibox platform at the head, closely followed by Chintai and the Vigor protocol in third place.
Secondly, we have to look at another protocol – REX (Resource Exchange). Inside this is stored almost 60 million EOS which translates (at current rates) to more than $162 million – which is not bad despite having a yield of about 0.17%.
The final data we need to look at is that regarding the EOS locked in the EOS protocol itself. Users stake this in order to be able to vote within the network. This amounts to almost 360 million EOS which is almost a third of the total supply. At the current market rate (at the time of writing) of $2.72, this could translate to around $979 million
So, now we just have to add all this together (90 + 162 + 979) to estimate the total amount of money blocked up in EOS DeFi. Using this approach gives us a figure of more than $1.2 billion.
This figure is still small when compared to the Ethereum blockchain which boasts more than $130 billion, but it’s worth remembering the comparative prices of these assets. ETH for example is worth just over $3,000 while EOS is still stuck below $3. If you’re among those who expect EOS to surge in 2022, then things could look very different. To see how different, we’ve compared what this looks like with the various price scenarios for EOS:
- EOS at $ 10, we have over $ 12 billion
- EOS at $ 20, we have over $ 24 billion
- EOS at $ 50, we have over $ 61 billion
- EOS at $ 100, we have over $ 123 billion
Therefore, if we ever found ourselves in the heady heights in which EOS reaches the same level as ETH ($3,000) suddenly we have over $3 trillion floating around. If EOS is indeed as undervalued as the most bullish of analysts believe, then EOS could be at the start of a very interesting journey indeed.
(Research and writing by Alfredo de Candia, writing and editing by Tom Cropper and Michael O’Sullivan)