The total value locked across decentralized finance protocols has reached a new yearly high of $52 billion, a level not seen since the days before FTX collapsed in Nov. 2022.

The resurgence is noteworthy, given the turbulent history that has shadowed the sector following the downfall of FTX and other firms like Terra, Three Arrows Capital and Celsius, with the events surrounding these players leading to widespread uncertainty around both centralized and decentralized finance protocols.

Both sectors have shown signs of recovery in recent months. When it comes to DeFi in particular, since the beginning of 2023, TVL has jumped from around $38 billion to its yearly high of $52 billion, a 36% hike in dollar terms.

The TVL metric, however, is not immune from the volatility of asset prices, …