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On November 24, the total value of tokens locked in DeFi has reached a new high, but the surge in crypto prices masked a surprising new trend. The amount of ETH locked in the DeFi protocol is actually declining.
Since November 20, the total value lock (TVL) in the DeFi agreement has grown to more than 14 billion U.S. dollars, and reached a record high of 14.39 billion U.S. dollars on November 21. The rising prices of Bitcoin and Ethereum have been the source of TVL’s continued growth. Since the beginning of November, the price of BTC has increased by 34% and the price of ETH has increased by 54%.
However, according to DeBank data, in the same time frame, more than 2 million ETH left the DeFi ecosystem, while the number of Bitcoin anchor coins has been relatively stable.
The ETH locked in DeFi reached a high of 9.25 million on October 20. Since then, although TVL has risen by 23%, this is actually due to the increase in the price of ETH, and the actual lock-up volume of ETH has fallen by more than By 25%. At the same time, the number of locked Bitcoins remained basically unchanged, rising from 164,500 on October 20 to 168,500.
So, what are the reasons for these ETHs leaving DeFi?
One of the most likely reasons is the upcoming release of Ethereum 2.0, which is a new upgrade of Ethereum, which will provide interest returns for pledged ETH and eventually reconfigure the entire Ethereum blockchain. The start of Ethereum 2.0 needs to meet the minimum pledge requirements. According to a report this morning, the Ethereum 2.0 deposit contract address has deposited more than 52,500 ETH, which meets the minimum pledge requirements. According to previous plans, Ethereum 2.0 is expected to be launched on December 1.
And this pledge requirement of Ethereum 2.0 may be an important reason for users to withdraw funds from DeFi.
On the other hand, DeFi users will also feel more cautious, because repeated hacking attacks continue to plague many emerging financial protocols, and many DeFi protocols are powerless against hacking attacks and various losses, which may cool the entire ecosystem. The emergence of Ethereum 2.0 happens to give these users who are not completely new to DeFi a new funding destination.