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DeFi TVL Surges 150% in 2024, Nearing 2021 Heights
12/10/2024 05:07
DeFi total value locked surges 150% in 2024, nearing $133.88B as liquid restaking tokens and Bitcoin layer-2s drive massive growth.
Key Notes
- DeFi's total value locked (TVL) rose 150% in 2024 to $133.88 billion, nearing 2021's $170 billion peak.
- EigenLayer dominates restaking with $17 billion TVL; LRTs total over $16 billion, led by Ether.Fi's $9 billion.
- Lido holds $40 billion TVL; Bitcoin LSTs like Lombard and Solv add $2.5 billion in new staking value.
The decentralized finance (DeFi) ecosystem is riding a massive wave of growth, with the total value locked (TVL) nearing levels not seen since 2021. According to DefiLlama, TVL has skyrocketed to over $133.88 billion as of December 9, marking an impressive 150% increase since the beginning of the year. Although it hasn’t yet reached the peak of $170 billion recorded in 2021, it’s clear DeFi is thriving once again.
What’s pushing this surge? The rise of liquid restaking tokens (LRTs) and the boom in Bitcoin layer 2 networks (L2s) are playing a huge role. The general upswing in cryptocurrency prices, spurred by the 2024 bull market, has also helped drive these numbers up.
“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 is a strategy where tokens already staked for rewards get reused to secure other protocols. This has proven highly popular. EigenLayer, the biggest name in restaking, launched in 2023 and quickly amassed over $17 billion in TVL, according to DefiLlama.
The rise of EigenLayer gave birth to an ecosystem of liquid restaking token protocols. One standout is Ether.Fi, which allows users to mint tradable tokens representing their claims on restaked assets. As of December 9, Ether.Fi holds over $9 billion in TVL. Other notable players in this space include Renzo and Kelp.
According to Kairos Research, overall TVL for the top five LRTs currently amounts to approximately 3.38 million ETH, valued at $12.5 billion. Additionally, DefiLlama indicates the total TVL across all LRTs, including multiple types of restaking tokens, surpasses $16 billion.
Lido and Bitcoin LSTs Add to the Momentum
Lido, a major liquid staking token (LST) protocol, remains DeFi’s single biggest source of TVL, with close to $40 billion staked. Around 10% of Lido’s staked Ether (stETH) has been restaked via EigenLayer. On the Bitcoin side, liquid staking tokens are gaining traction fast. According to Staking Rewards, Bitcoin LSTs currently hold over $2.5 billion in TVL.
CoreChain began issuing staking rewards this year, while Babylon plans to follow soon. The most popular Bitcoin LST is Lombard, holding about $1.15 billion in TVL, closely followed by Solv, which holds around $1 billion.
As CoinSpeaker earlier reported, Ethereum DeFi also reached new heights recently. In late November, Ethereum TVL surpassed $80 billion for the first time in two years. On November 21, Ethereum reclaimed the top spot from Tron. Ethereum’s lead expanded further on November 23 when Tether minted $2 billion in USDT on Ethereum, compared to $1 billion on Tron.
These developments show Ethereum’s dominance in DeFi is far from over. Bitcoin-based staking solutions are also helping the ecosystem expand beyond its traditional boundaries.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
