Follow

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use
Subscribe

DeFi Market Surges 137% Year-over-Year, Reaching $129 Billion in TVL Amid Crypto Bull Run

Defi Market Defi Market

After facing multi-year lows in 2022 and 2023, the DeFi market has experienced a major resurgence thanks to the 2024 crypto bull run. The rally in crypto prices boosted asset values across decentralized finance, drawing in more users and liquidity. As investors flocked to DeFi platforms for activities like staking, lending, and yield farming, growth continued to accelerate.

Technological advancements, particularly in Layer 2 solutions, made DeFi faster and more affordable, attracting a broader user base. With this momentum, decentralized finance has become an even more integral part of the crypto ecosystem.

The total value locked (TVL) in DeFi platforms reached a new milestone, soaring by 137% year-over-year to $129 billion this month, according to data from CryptoPresales.com.

The DeFi ecosystem had a fantastic year in 2024, fueled by rising crypto prices that drove more assets into decentralized platforms. With investors flocking to DeFi for staking, lending, and yield farming, the total value locked in DeFi reached heights not seen in nearly three years, marking a sharp recovery after two tough years.

According to DeFi Llama data, the TVL in DeFi stood at around $54 billion in January 2024. By the end of Q1, this figure jumped by 72% and hit $93 billion. After peaking at nearly $105 billion in mid-June, the TVL dipped during the summer months, falling to $87 billion by the end of October and marking almost a 20% decline in four months.

However, the crypto bull run in November and December brought new momentum to the DeFi landscape, pushing the TVL to levels not seen in years. After reaching $118 billion in the last week of November, TVL soared to over $140 billion in mid-December, marking almost a 160% increase since the beginning of the year. Though the number fell to $129 billion in the last two weeks, it remains the highest since May 2022, reflecting a 137% jump from January 2024.

The DeFi Llama data also shows that Ethereum continues to lead with a 55% share of the TVL market, the same as in January last year. Solana experienced impressive growth, tripling its market share from 2.5% to 7.3%, now ranking as the second-largest blockchain by TVL. On the other hand, Tron`s market share melted from roughly 15% to 5.9%, pushing it to third place. Bitcoin and Binance Smart Chain (BSC) follow with 5.3% and 4.5% TVL market shares, showing their growing role in DeFi.

According to the Dune Analytics platform, which tracks the number of unique addresses involved in buying or selling specific projects associated with DeFi, the number of DeFi users has also soared, reaching all-time highs.

In January 2024, there were 5.1 million unique DeFi users worldwide. By the end of July, this figure had more than doubled, reaching over 12 million. However, the real growth came in the final quarter of the year. In September, the DeFi space had 21.7 million unique users, the highest number this market has ever seen. Although the figure slightly decreased in October and November, it still stood at an impressive 20.7 million in December, reflecting a 300% year-over-year increase.

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use