DeFi TVL Down 30%; Liquid Staking
Decentralized finance (DeFi) projects’ assets locked (TVL) value has fallen 30% YoY to $36.95 billion, according to DeFillama data. Despite a strong start to the year, the sector has experienced six months of underperformance, bringing it to its current low. Liquid staking projects, which have returned almost 300% from their 2022 low, have shown resilience, returning almost $20 billion in TVL to $17.67 billion as of the latest figures. This contrasts with the broader decline in other DeFi categories.
Lido dominates the DeFi market, holding over 50% of the market share, surpassing major players like Binance, Coinbase, and Kraken, according to Nansen data. Tron network’s DeFi projects have grown significantly, reaching an all-time high of 18.23%. Ethereum remains the primary platform for DeFi projects and applications, controlling over 50% of the market. Other networks like Binance Smart Chain, Polygon, and Arbitrum host many projects.
DeFi projects have experienced a decline of 2.5 million active monthly users throughout the year, starting in May and continuing downwards. The DeFi sector had over 3.8 million monthly users in May, but by October, this had dwindled to around 1.15 million. Monthly unique users have dropped by 66% from the all-time high of 7.51 million in November 2021.
(With inputs from Shikha Singh)
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