The decentralized finance (DeFi) ecosystem is undergoing a spectacular revival, reaching an 18-month high with total locked-in value (LTV) exceeding $60 billion. This significant milestone signals renewed investor confidence and marks a decisive turning point for the sector.
A booming sector
Since November 2023, the DeFi ecosystem has seen an impressive 68% growth, increasing its TVL from $36 billion to $60.72 billion. This rebound highlights the market’s renewed dynamism and the renewed confidence of users wishing to invest their assets in decentralized financial activities.
This increase is largely attributed to the recent rise in crypto asset prices, spurred by the craze for Bitcoin exchange-traded funds (ETFs). This wave of interest has propelled Bitcoin to close to $50,000 and Ethereum, the cornerstone of the DeFi blockchain network, beyond $2,000.
Ethereum in the lead
Ethereum retains its dominant position within the DeFi ecosystem, with over 58% market share and a TVL of $35.3 billion. Behind it, blockchain Tron takes second place with a 13% market share and a TVL of $8 billion. Other networks such as Solana, Binance Smart Chain, Polygon and Arbitrum also play a significant role, hosting numerous projects and posting significant TVL.
Blockchain Sui, in particular, deserves particular attention, having rapidly climbed the ranks in the DeFi space and outperformed established competitors such as Cardano and Bitcoin.
Dominant protocols : Lido at the forefront
Lido Finance, a leading liquid staking protocol, holds a significant market share of 37%, with a TVL of $22.58 billion. The protocol is on the verge of crossing the 10 million ETH staked milestone, operating on leading blockchain networks such as Ethereum, Solana, Moonbeam and Moonriver.
The top five protocols also include stablecoin creator DAI, Maker, lending platforms Aave and Justlend, and decentralized exchange Uniswap. These protocols collectively hold TVLs of $7.7 billion, $6.98 billion, $6.14 billion and $4.21 billion, respectively.
A renaissance in trading
Decentralized exchanges (DEX) are also experiencing a resurgence in daily trading volumes, with an increase of 3.29% in just one week, facilitating trades worth approximately $22 billion. In addition, a Dune Analytics dashboard, organized by rchen8, shows renewed interest in the sector, with over 3 million users returning to previous highs. In the last two months, the ecosystem has welcomed 3.6 million new addresses, bringing the total number of users to almost 50 million.
This renaissance of the DeFi ecosystem is testament to the continuing vitality and innovation in the field of decentralized finance. With major players like Ethereum and Lido Finance at the forefront, the sector is well positioned to continue to grow and attract even more investment in the future.
