06 Jan 2021 · 2 min read

Ethereum & Bitcoin Locked in DeFi Plunge; ETH Staked Rises

Ethereum (ETH) locked in decentralized finance (DeFi) has seen a significant drop of 30%, while more than 50% of bitcoin (BTC) left DeFi during past several months as both cryptoassets have been rallying. At the same time, the number of coins staked in the Ethereum 2.0 (ETH 2.0) deposit contract is increasing.

Source: Adobe/M.a.u

On September 17, 2020, the amount of ETH locked in DeFi had reached its peak, recording an all-time high of ETH 9.771m, according to DeFi Pulse data. At the time of writing, it's ETH 6.845m, or 30% less.

Source: defipulse.com

Furthermore, a significant number of BTC has left DeFi as well over the past two months or so. Looking at the DeFi Pulse chart, we see the number of BTC locked at DeFi peaking at 64,993 on October 22, 2020. It then began a steady downward course, with a few minor spikes along the way, reaching BTC 30,918 on January 6. This means that it dropped by 52% in total since its all-time high less than three months ago.

Source: defipulse.com

However, as both BTC and ETH have been rallying, this exodus has been compensated. The two largest cryptoassets now have a 44% share in the total value locked in USD in DeFi. It continues its climb, breaking one milestone after another, currently standing at USD 20.1bn. Since the first day of this year, it has increased by 36%.

Source: defipulse.com

Meanwhile, the Ethereum 2.0 deposit contract now holds more than ETH 2.24m, per the data provided by on-chain analytics site Dune Analytics, which is more than USD 2.5bn by the current price of USD 1,120 per ETH (at 10:57 UTC). This might seem as a remarkable number given that the contract launched in November with a somewhat slow start, and that it was uncertain until the very last day whether there'd be enough ETH staked by the original deadline for the ETH 2.0 Phase 0 launch. The threshold was ETH 524,288, which means that the contract now has nearly 4.5 times that amount.

Source: duneanalytics.com

The deposited amount is even higher when we look into the data provided by ETH 2.0 Launchpad, which gives the number of nearly ETH 2.28m. Per Dune Analytics, however, the amount was deposited by 4,502 unique depositors.

Lastly, looking at the locked in staking by asset data provided by Staking Rewards, ETH is in the fourth place, after polkadot (DOT), cardano (ADA), and synthetix (SNX), respectively.

Source: stakingrewards.com

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