DeFi is mounting a comeback amid the recent bullish momentum across the crypto markets, with the sector’s market cap and total value locked rebounding to its highest level since mid-2022.
According to CoinGecko, the combined capitalization of DeFi tokens is up 88% since mid-October at $79.7B — its highest level since the collapse of Terra wiped tens of billions from the DeFi market cap in May 2022. The figure would need to gain by a further 60% before reclaiming the levels witnessed prior to Terra’s failure.
However, stETH — Ether staked via the Lido liquid staking protocol — accounts for 27% of the combined market cap, meaning the metric has appreciated significantly alongside ETH’s 53% rally since mid-October.
The total value locked (TVL) in DeFi protocols has also grown by 55% since mid-October, according to DeFi Llama. The value of assets locked in DeFi currently sits at $55.3B, its highest level since August 2022.
The recent growth suggests DeFi’s extended bear trend is over, with the TVL of DeFi protocols steadily declining from Terra’s failure until mid-October. The DeFi market cap also retested its 2022 lows in January 2023 before trending sideways throughout much of last year.
This news is republished from another source.
