Ethereum’s Liquidity Restocking Raises DeFi TVL to $100B in First Quarter
Decentralized finance's total value locked (TVL) nearly doubled in the first three months of this year compared to the previous quarter.
Defy's total value rose from a low of $36 billion in Q4 2023 to nearly $97 billion in the first quarter of 2024. Since the beginning of the year, last week it increased by 81% to a two-year high of 98 billion dollars.
Messari reported slightly higher TVL figures on April 18, with Diffie securities up 65.6% quarter-over-quarter to $101 billion. However, this growth is due to rising asset prices and re-increased liquidity.
“This volatility was driven primarily by asset price appreciation and re-increased liquidity, leading to a nearly 71% increase in Ethereum TVL.”
The findings were echoed in a report on April 18 by Web3 infrastructure and developer platform QuickNode and institutional crypto data platform Artemis.
“Staking, liquidation, re-staking, and re-staking are all factors in DeFi's recent explosive growth,” he says, before adding, “This explains why staking now represents a large portion of DeFi's TVL.”
Liquid staking TVL rose to an all-time high of $63 billion on March 13, mainly driven by Ether (ETH) liquid staking protocol Lido, which currently has a 62% market share of the liquid stake ecosystem, Defillama said.
Additionally, fluid regression protocols such as EigenLayer exploded in popularity and use during that period. EigenLayer TVL In the first three months of 2024, it surged 990 percent to end the quarter at $12 billion.
EigenLayer allows ETH to be included more than once for additional products.
Related: DeFi TVL Reaches $100B as Bitcoin Pumps Emotion
FastNode, meanwhile, said its 291% quarter-on-quarter growth in user activity “has signs of growth and change despite the SEC's best efforts, raising hopes for a second ‘DeFi Summer'.”
However, since the recent crypto market pullback, DeFi TVL has fallen 11% to $86.6 billion at the time of writing.
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