TL;DR
- DeFi’s Major Comeback: The total value locked (TVL) in DeFi platforms has surged from $36 billion in Q4 2023 to nearly $98 billion in Q1 2024, marking an 81% growth. This growth is largely attributed to staking, liquid staking, restaking, and liquid restaking.
- Standout Performers: Lido, holding a 62% market share in the liquid staking ecosystem, and EigenLayer, with a 990% increase in TVL, have significantly contributed to the growth. EigenLayer’s new feature allowing for multiple stakings of ETH has added a new level of usefulness within the DeFi sector.
- Potential ‘DeFi Summer’ Resurgence: The beginning of 2024 marks a new chapter for DeFi, characterized by a revived sense of hope, increased risk consciousness, and improved creativity. Despite regulatory hurdles, the sector shows significant potential for growth.
The DeFi sector has experienced a major comeback in the first quarter of 2024, with the total value locked in DeFi platforms increasing from $36 billion in Q4 2023 to almost $97 billion. This trend continued as the TVL reached $98 billion last week, marking an 81% growth since the beginning of the year.
A joint report by QuickNode, a blockchain infrastructure platform, and Artemis, a data analytics platform, noted that staking, liquid staking, restaking, and liquid restaking have all been key drivers behind DeFi’s recent rapid expansion. This is why staking now accounts for a substantial percentage of DeFi’s total value locked (TVL).
One of the most successful protocols during this period of growth is Lido, which holds a majority market share in the liquid staking ecosystem at 62%. The success of Lido has contributed to the record-breaking total value locked (TVL) in liquid staking, reaching $63 billion on March 13.
Another standout performer, EigenLayer, experienced a massive 990% increase in TVL during this time, finishing the quarter with a total of $12 billion. EigenLayer has recently implemented a feature that allows for multiple stakings of ETH to generate more yields, creating a new level of usefulness and motivation within the DeFi sector.
The Potential ‘DeFi Summer’ Resurgence
The report emphasizes a new chapter for DeFi at the beginning of 2024, characterized by a revived sense of hope, increased consciousness of risks, and improved creativity. A significant 291% rise in user engagement compared to the previous quarter has raised hopes of a possible ‘DeFi Summer’ resurgence.
The expected increase indicates a significant change in the industry, despite continued regulatory hurdles from organizations like the SEC. Web3 gaming was highlighted as a standout area, as outlined in the report, experiencing a notable 155% increase in active addresses quarter-over-quarter.
The expansion of Web3 shows its ability to draw in and keep a large player community, displaying the sector’s potential for continued involvement. The writers also highlight the quick growth of Layer 2 solutions as a key advancement in the past half-year.
Platforms such as Arbitrum and Base have experienced significant growth in total value locked (TVL), showing a strong interest in expanding on-chain liquidity. This is crucial for the wider adoption of Web3 technologies.
