With Ether (ETH) breaking through the $200 marking yesterday, $1 billion in value is now locked in the DeFi markets.

Total value locked in DeFi markets, Feb. 7

Total value locked in DeFi markets, February. 7. Source: defipulse.com

Equally of February. 7, ETH is trading close to $220 — up 4.v% on the twenty-four hours and almost 22% on the week.

Broadly speaking, DeFi is shorthand for decentralized finance, referring to the apply of blockchain, digital assets and smart contracts in fiscal services such as credit and lending.

According to analytics site Defipulse.com, the $1 billion locked in the markets — i.e. across the spectrum of smart contracts, protocols and decentralized applications (DApps) congenital on Ethereum — is almost 60% denominated in MakerDAO's DAI stablecoin.

Defipulse stats reveal that one year agone today, the value locked in DeFi was roughly a quarter of what information technology is now, at $276 million.

As it celebrates the milestone, some in the Ethereum community accept pointed to the part played by the Bitcoin (BTC) lightning network, which accounts for ane.7% of the value ($8.5 million) — making information technology into the superlative ten digital avails used for DeFi contracts and applications:

DeFi total value, breakdown in top ten digital assets, Feb. 7

DeFi total value, breakup in top ten digital assets, February. 7. Source: defipulse.com

As the site notes, the full value effigy is calculated hourly past pulling the total residual of Ether (ETH) and ERC-twenty tokens held in DeFi smart contracts and multiplying these balances by their spot prices in USD.

ETH price correlation

Equally Cointelegraph reported last autumn, while the dollar value nautical chart of digital assets locked in DeFi shows some correlation to Ether's toll, information technology is not entirely dependent on it.

After falling with Ether's price in July 2022, the value of avails locked in DeFi apps resumed its growth even every bit the altcoin'south price connected largely to fall. In a brusk time period, the correlation is tighter.