With the recent surge in the price of Bitcoin to a new all-time high of $69,080, the cryptocurrency market remains hot, and the total value locked (TVL) in the overall DeFi sector has also reached a new high since May 2022, reaching $101.36 billion. Within the DeFi space, Ethereum has been a major contributor, especially in the rapid growth of liquidity staking and re-staking markets.
(Previous Summary:
Stablecoin Milestone: USDT Market Cap Breaks $100 Billion, Reaching a New All-Time High!
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(Background Supplement:
ETH Breaks $3,200: Lido’s Total Value Locked Reaches $31.3 Billion, Can LDO Return to Glory?
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With the recent sharp rise in Bitcoin, the price of Bitcoin reached a new all-time high of $69,080 last night, and the market cap of stablecoin USDT also surpassed $100 billion for the first time, with an increase of 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 Breaks $100 Billion, Reaching a New High Since May 2022
According to data from The Block, the total value locked (TVL) 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 risen by 64% in the first quarter of this year. Although it is still about 76% below the peak of $178 billion in November 2021, if the current growth rate continues, we may see a new high in DeFi TVL before the second quarter.
According to The Block’s categorization of protocols, the TVL is divided as follows, from highest to lowest:
Lending platforms: 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 platforms: 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” Becoming Popular Tracks
Currently, Ethereum has the highest proportion of TVL in DeFi protocols, followed by Tron, BSC, Arbitrum, Bitcoin, and Solana in descending order.
TVL distribution across chains. Source: DeFiLlama
It is worth noting that the protocols with the highest amount of funds attracted currently are Lido and EigenLayer, which have surpassed Aave recently. They belong to the liquidity staking (LSD) protocol and the re-staking protocol, respectively. With Ethereum’s successful completion of the Shapella upgrade in April last year, allowing for the redemption of staked Ether, Ethereum’s staking trend has been steadily rising. The current staking ratio has exceeded 26%, compared to less than 15% before the upgrade, representing a growth of over 70% in less than a year. 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 TVL. Furthermore, with the pursuit of capital efficiency, the “re-staking market” has become a new hotspot, with Ethereum investors venturing into EigenLayer and liquidity re-staking projects built on top of EigenLayer, such as Renzo, ether.fi, Kelp DAO, Eigenpie, Swell, Puffer Finance, etc., aiming to earn interest income and potential project airdrop rewards.
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