DeFi makes a spectacular comeback: $138 million flows into the market

After a long "winter", DeFi is finally heating up again!

On July 18th, the total value locked (TVL) in DeFi protocols reached a three-year high of 138 billion dollars, increasing by 57% since April. Although it has not reached the excitement level of 2021, the current upward momentum is hard to ignore.

With Ethereum (ETH) back in the leading position, institutional money is knocking at the door, along with areas such as liquidity staking and restaking thriving, DeFi may be preparing for the next big breakout.

DeFi makes a stunning comeback

The decentralized financial space is showing strong signs of revival, with a total TVL of $138.5 billion recently — the highest level since May 2022, according to data from DeFiLlama.

This figure represents a 57% increase from the low of 87 billion dollars in April, reflecting a significant change in market sentiment.

Source: DeFiLlamaInterest from institutions is also increasing, retail users are starting to return, and Ethereum still maintains its position as the irreplaceable "king", accounting for nearly 60% of the entire DeFi ecosystem.

Although the total TVL is still 30% lower than its peak nearly 4 years ago, the recent momentum of DeFi is clearly an extremely positive signal.

Growth Based on Three Pillars

This resurgence is not widespread, but is mainly driven by three key areas: lending, liquidity staking, and restaking, which are experiencing remarkable growth.

Source: DeFiLlamaAave (AAVE), one of the most reliable lending platforms in DeFi, has now exceeded 50 billion dollars in total value locked, affirming its position as the core infrastructure of the market.

Meanwhile, Lido DAO (LDO) continues to dominate the liquid staking sector on Ethereum with over 32 billion dollars in value locked. Close behind is EigenLayer, an innovator in the restaking field, attracting attention with nearly 17 billion dollars in TVL.

These three protocols alone account for nearly 50 billion dollars — more than 1/3 of the total value locked in the entire DeFi.

All roads lead to Ethereum

The majority of the DeFi resurgence can be attributed to Ethereum, which continues to play a central role in the ecosystem, serving both as an infrastructure platform and a hub of innovation.

Since the beginning of 2024, the value of real-world assets (RWA) tokenized on Ethereum has increased nearly 20 times, thanks to the participation of major asset managers bringing traditional fund products on-chain.

Source: XThe foundational factors of Ethereum are also very impressive: over 270 billion dollars in TVL, 137 billion dollars in circulating stablecoins, 120 billion dollars staked, and nearly 40 billion dollars staked in liquidity.

With the trading volume on DEX platforms reaching nearly 500 billion dollars since the beginning of the year, Ethereum's dominance is gradually expanding into the realm of traditional finance.

Dinh Dinh