Crypto Economy’s Rise Fuels Defi Sector to Surpass $100 Billion TVL

This week, as of March 9, 2024, the cumulative value held in decentralized finance (defi) platforms exceeded $100 billion for the first time since the downfall of Terra in May 2022. In the past 30 days, the leading three defi platforms have experienced an increase of at least 50%, fueled by the substantial rise in the overall value of the cryptocurrency market.

Major Growth in Defi

Currently, the total value locked (TVL) in defi has reached beyond the $100 billion threshold, a figure last observed when Terra’s stable coin UST lost its peg. The expansion in TVL can largely be attributed to the cryptocurrency market’s expansion to over $2.7 trillion and the continued influx of ethereum into liquid staking derivatives (LSDs).

The growing interest in LSDs has catapulted Lido Finance to the forefront of the defi sector, boasting $40.35 billion in value at this moment. Eigenlayer has quickly ascended to become the second-largest defi protocol, overtaking Aave’s TVL recently.

It now boasts $12.44 billion in locked value, whereas Aave has approximately $12.10 billion. With $9.84 billion, Makerdao ranks as the fourth-largest defi protocol this week. Over the preceding month, Lido’s value surged by 56.04%, Eigenlayer by 88.43%, Aave by 52.80%, and Makerdao by 15.86%.

The top 26 protocols in terms of TVL size have all seen increases in the last month. Ethereum holds the lion’s share of TVL, commanding 58.81% of the $102 billion total. Tron comes in second with 10.51%, followed by the BNB Chain at third with 5.63%.

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Arbitrum, Solana, Bitcoin, Polygon, Avalanche, Optimism, and Blast complete the list of the top ten blockchains by TVL size. Solana and BNB Chain saw the largest 30-day rises with 81.46% and 54.50% respectively.

What do you think about the TVL in defi reaching $100 billion? Share your thoughts and opinions about this subject in the comments section below.

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