The total value locked (TVL) in decentralized finance (DeFi) protocols has surpassed $100 billion for the first time in nearly two years, reaching $101.36 billion on March 5. This milestone underscores a significant growth phase in the DeFi ecosystem, indicating increased activities and investor participation in the sector.
DeFi TVL Exceeds $100 Billion
According to The Block’s data dashboard, on May 11, 2022, the value locked in DeFi exceeded $100 billion, reaching approximately $112.67 billion. This marks the last time TVL exceeded $100 billion. The distribution of TVL across different DeFi categories also showcases the sector’s diversity. Lending platforms, with $32.62 billion or 32.2% of the total TVL, underline their significant role in the DeFi space.
Decentralized exchanges (DEX) account for $19.97 billion or 19.7%, followed by collateralized debt positions with $12.22 billion or 12%, and buyback activities holding $10.06 billion or 9.9%. The disclosed figures represent the diverse areas of interest and applications in the DeFi ecosystem, from transactions to lending, and the innovative ways users maximize their cryptocurrency holdings.
ETH Staking on the Rise
Furthermore, Ethereum‘s staking successes have reached a new peak. With over 31.5 million Ethereum staked on the Ethereum blockchain, valued at approximately $115 billion and constituting 26% of the total Ethereum supply, it has reached a new high. This significant level of staking activity underscores the importance of the Ethereum network for the DeFi sector and may indicate strengthened confidence in its long-term prospects.
The last occurrence of DeFi TVL crossing the $100 billion threshold was recorded on May 11, 2022, at the level of $112.67 billion. The current recovery and expansion of TVL in DeFi could reflect a renewed excitement in the market, influenced by both the recovery in cryptocurrency values and the emergence of new DeFi categories that continue to attract investment and interest.
