Ethereum's Impact on the DeFi Market
Ethereum plays a core role in the explosion of the DeFi market. DeFi protocols are mainly built on the Ethereum platform, allowing users to conduct financial transactions without the need for intermediaries. Total value locked (TVL) in DeFi projects on Ethereum has surpassed 70 billion USD. Applications like Uniswap, MakerDAO, and Curve Finance offer services ranging from trading to lending to stablecoins, creating a diverse decentralized financial ecosystem. However, high transaction costs and security issues remain major challenges. Ethereum 2.0 and Layer 2 solutions are expected to solve these problems, helping DeFi develop more sustainably.
