DeFi Total Value Locked Reaches $133.88 Billion in December 2024
The decentralized finance (DeFi) ecosystem is experiencing significant growth, with the total value locked (TVL) reaching over $133.88 billion as of December 9, a 150% increase since the start of the year. This figure is approaching the peak of $170 billion recorded in 2021, indicating a resurgence in DeFi activity.
Key factors driving this surge include the rise of liquid restaking tokens (LRTs) and the expansion of Bitcoin layer 2 networks (L2s). Additionally, the overall increase in cryptocurrency prices, influenced by the anticipated 2024 bull market, has contributed to this growth.
“We’re still in the early innings for not only restaking, but crypto at large. In the future institutions will have a plethora of risk-adjusted strategies to get the most out of staking their [Ether],” said Kairos Research.
EigenLayer Dominates Restaking with $17B TVL
Restaking enables tokens that are already staked for rewards to be reused for securing other protocols. EigenLayer, launched in 2023, has quickly become a leader in this space, amassing over $17 billion in TVL. The emergence of EigenLayer has facilitated an ecosystem of LRT protocols, including Ether.Fi, which allows users to mint tradable tokens representing claims on restaked assets. As of December 9, Ether.Fi holds over $9 billion in TVL. Other notable protocols include Renzo and Kelp.
Kairos Research reports that the total TVL for the top five LRTs is approximately 3.38 million ETH, valued at $12.5 billion. DefiLlama indicates that the total TVL across all LRTs exceeds $16 billion.
Lido and Bitcoin LSTs Add to the Momentum
Lido remains the largest source of TVL in DeFi, with nearly $40 billion staked. About 10% of Lido's staked Ether (stETH) has been restaked via EigenLayer. On the Bitcoin side, liquid staking tokens are gaining momentum, holding over $2.5 billion in TVL according to Staking Rewards. CoreChain began issuing staking rewards this year, with Babylon expected to follow soon. The leading Bitcoin LST is Lombard, with approximately $1.15 billion in TVL, closely followed by Solv at around $1 billion.
Ethereum's DeFi ecosystem recently reached new heights, with TVL surpassing $80 billion for the first time in two years. Ethereum reclaimed its top position from Tron on November 21, further solidifying its dominance in the DeFi sector, especially after Tether minted $2 billion in USDT on Ethereum compared to $1 billion on Tron.
These trends indicate that Ethereum’s dominance in DeFi continues while Bitcoin-based staking solutions are expanding the ecosystem's boundaries.