DeFi, or decentralized finance, is a blockchain-based alternative to traditional financial solutions, including banking, exchange, funding and so on. However, the state DeFi is in right now raises a lot of questions about the future of the industry.

According to DefiLIama's data, the difference between the second and the third biggest protocol on the network amounts to more than $2 billion; between the first and the third place — almost $3 billion.

The first place is held by the biggest decentralized stable currency, DAO. However, the protocol's TVL did not reach such a high number only because of the decentralized stable currency. More than 400 applications and services integrated the decentralized stablecoin, which is the primary reason behind the massive $6.63 billion TVL.

The second place on the DeFi market is held by Lido Finance, a protocol we have covered numerous times. Lido Finance allows users to increase the liquidity of their staked assets by exchanging cryptocurrencies like ETH to stETH tokens. Since the coin lock period for Ethereum remains undisclosed, investors choose Lido to have the ability to manage their ETH while it remains in staking.

Despite the aforementioned projects' dominance on the market, it is hard to call them centralized or dangerous for the stability of the decentralized finance industry. However, the lack of competitors for projects like Lido Finance creates certain risks for retail users.

(By Arman Shirinyan)