With the recent surge in the price of Bitcoin to a new all-time high of $69,080, the cryptocurrency market remains hot. The total value locked (TVL) in the overall DeFi sector has also reached a new high since May 2022, reaching $101.36 billion. Ethereum is the main contributor in the DeFi space, especially in the areas of liquidity staking and re-staking.
(Previous Summary: Stablecoin Milestone: USDT Market Cap Surpasses $100 Billion, Reaching a New All-Time High!)
(Background Supplement: ETH Breaks Through $3,200: Lido’s Total Value Locked Reaches $31.3 Billion, Can LDO Return to Glory?)
With the recent sharp increase in the price of Bitcoin, reaching a peak of $69,080 last night, a new all-time high has been set. The market capitalization of the stablecoin USDT has also surpassed $100 billion for the first time, increasing by over $2 billion in the past week. At the same time, funds continue to flow into the DeFi sector, and the total value locked (TVL) has reached a new high since May 2022.
DeFi TVL Surpasses $100 Billion, Reaching a New High Since May 2022
According to data from The Block, the total value locked in DeFi protocols on various chains has surpassed $100 billion for the first time since May 2022, reaching $101.36 billion. It has grown significantly by 58% in the past month and has already increased by 64% in the first quarter of this year. Although it is still about 76% lower compared to the peak of $178 billion in November 2021, if the current growth rate continues, a new high in DeFi TVL may be achieved before the second quarter.
According to The Block’s categorization of protocols, the TVL is divided as follows from highest to lowest:
– Lending: accounting for 32.2%, equivalent to $32.62 billion
– Decentralized exchanges: accounting for 19.7%, equivalent to $19.97 billion
– Collateralized debt positions: accounting for 12%, equivalent to $12.22 billion
– Re-staking: accounting for 9.9%, equivalent to $10.06 billion
– Yield protocols: accounting for 4.2%, equivalent to $4.35 billion
Source: The Block
Ethereum’s “Liquidity Staking and Re-staking” Becomes Popular Track
Currently, Ethereum has the highest proportion of total value locked in DeFi protocols, followed by Tron, BSC, Arbitrum, Bitcoin, and Solana in order.
The proportion of TVL on each chain. Source: DeFiLlama
It is worth noting that the protocols with the highest inflows of funds currently are Lido and EigenLayer, which have surpassed Aave. They belong to the liquidity staking (LSD) and re-staking protocols, respectively. With Ethereum’s successful completion of the Shapella upgrade in April last year, allowing for the redemption of staked Ether, the staking trend on Ethereum has been steadily increasing. The current staking ratio has surpassed 26%, growing by over 70% within less than a year compared to the staking ratio of less than 15% before the upgrade. This has motivated the development of liquidity staking protocols and LSDFi. Recently, Lido’s TVL has also reached a new high, surpassing $37.1 billion, firmly holding the top position in terms of TVL. As the pursuit of capital efficiency continues to increase, the “re-staking market” has become a new hotspot in the market this year. Ethereum investors are flocking to EigenLayer and liquidity re-staking projects built on top of EigenLayer, such as Renzo, ether.fi, Kelp DAO, Eigenpie, Swell, Puffer Finance, etc., to earn interest income and potential project airdrop rewards.
Source: The Block
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