DeFi Sector Achieves Three-Year High of $153 Billion in TVL
The decentralized finance (DeFi) market reached $153 billion, marking a three-year high, driven by ETH's rise towards $4,000 and strong inflows into restaking protocols. Data from DefiLlama indicates this surge surpasses the December 2024 high and is the highest since May 2022.
Key points include:
- ETH increased by 60% over the last 30 days, from $2,423 to $3,887.
- Institutional investments include a $1.3 billion purchase from Sharplink Gaming and a $2 billion acquisition by BitMine.
- Ethereum holds 59.5% of total value locked (TVL) in DeFi, predominantly through Lido and Aave, each with $32 billion to $34 billion in TVL.
The yield farming battle
Investors can stake ETH for an annual yield between 1.5% and 4%. Restaking protocols offer additional yields and liquid staking tokens usable across the DeFi ecosystem.
A strategy shared by user OlimpioCrypto could generate up to 25% annual returns on USDC and sUSDC using Euler and Spark. An alternative yields lower returns but is simpler, involving minting sUSDC via Spark.
Solana and other blockchains
Solana's TVL grew by 23% to $12 billion, with Sanctum, Jupiter, and Marinade attracting significant inflows. Avalanche and Sui saw their TVLs increase by 33% and 39%, respectively. The Bitcoin DeFi ecosystem rose by 9% to $6.2 billion amid record highs at $124,000.