DeFi's Total Value Lock Hits $86 Billion Mark First Time Since 2022

Decentralized finance (DeFi) has tremendously grown in popularity and technological improvements in recent years. Total value lock (TVL) data reveals that decentralized finance has grown past the $86.2 billion mark. A value that has not been observed since the downfall of Terra’s stablecoin in 2022. Lido’s liquidity-staking platform leads the TVL protocol ranking with $30 billion. AAVE, a lending system, follows at $8 billion.

DeFi’s Comeback from Treacherous Depths

May 2022 is a sad reference in TVL’s history. From a peak of $172 billion on April 5th, TVL dropped to $82 billion by March 14th and $51 billion on June 19th. Accredited to this fall is UST stablecoin by Terra. Terra’s LUNA trampled from $80 valuation per unit to below a cent. Before the drop, out of $196.6 billion in TVL, Terra accounted for $28.23 billion, 14.36% of the total.

A year and nine months later, TVL celebrated a new turnaround, with Lido leading with $30 billion. AAVE follows with $8.77 billion, Marker with $8.71 billion, and EigenLayer with $8.44 billion. Completing the top five list is JustLend, with $6.315 billion. These protocols are important as DeFi recovers past $86 billion. They showcase innovation and security in their systems, rebuilding trust and attracting investors.

Ethereum supremacy in the rejuvenating DeFi’s total value lock is undeniable. With around 981 protocols, Ethereum holds $48.48 billion in TVL, which is 56%. This dominance is credited to its vast ecosystem and network effect, positioning it as the go-to blockchain for DeFi applications.

Securing the second largest blockchain title in TVL is Tron, which has 30 protocols. It leverages $8.67 billion, 10.05% of the total value. In third, fourth, and fifth place in chain TVL, is BSC with 699 protocols, $4.342 billion, Arbitrum with 550 protocols, $3.082 billion, and Solan with 129 protocols, $2.023 billion.

As Ethereum continues to lead chain TVL with protocols like Aave, MakerDAO, Rocket Pool, Origine Dollar, and Carbon, the DeFi ecosystem stands strong, diverse, and more secure as it sources new heights in 2024.