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After struggling through multi-year lows in 2022 and 2023, the 2024 crypto bull run breathed new life into the DeFi market. The surge in crypto prices propelled asset values in DeFi, attracting more users and liquidity. Investors flocked to DeFi for staking, lending, and yield farming, driving further growth. Meanwhile, advancements in technologies like Layer 2 solutions made DeFi faster and cheaper, drawing in a wider audience. With this momentum, decentralized finance became an even more significant part of the crypto world, while the total value locked (TVL) in DeFi platforms skyrocketed to new highs.
According to data presented by CryptoPresales.com, the total value locked in DeFi Soared by 137% year-over-year and hit $129 billion this month.
The highest TVL since May 2022
The DeFi ecosystem had a fantastic year in 2024, fueled by rising crypto prices that drove more assets into decentralized platforms. With investors flocking to DeFi for staking, lending, and yield farming, the total value locked in DeFi reached heights not seen in nearly three years, marking a sharp recovery after two tough years.
According to DeFi Llama data, the TVL in DeFi stood at around $54 billion in January 2024. By the end of Q1, this figure jumped by 72% and hit $93 billion. After peaking at nearly $105 billion in mid-June, the TVL dipped during the summer months, falling to $87 billion by the end of October and marking almost a 20% decline in four months.
Total value locked (TVL) in DeFi
Total value locked (TVL) in decentralized finance (DeFi) from January 2024 to January 2025 (in billion U.S. dollars)
However, the crypto bull run in November and December brought new momentum to the DeFi landscape, pushing the TVL to levels not seen in years. After reaching $118 billion in the last week of November, TVL soared to over $140 billion in mid-December, marking almost a 160% increase since the beginning of the year. Though the number fell to $129 billion in the last two weeks, it remains the highest since May 2022, reflecting a 137% jump from January 2024.
The DeFi Llama data also shows that Ethereum continues to lead with a 55% share of the TVL market, the same as in January last year. Solana experienced impressive growth, tripling its market share from 2.5% to 7.3%, now ranking as the second-largest blockchain by TVL. On the other hand, Tron`s market share melted from roughly 15% to 5.9%, pushing it to third place. Bitcoin and Binance Smart Chain (BSC) follow with 5.3% and 4.5% TVL market shares, showing their growing role in DeFi.
Unique DeFi users surge 300%, exceeding 20 million
According to the Dune Analytics platform, which tracks the number of unique addresses involved in buying or selling specific projects associated with DeFi, the number of DeFi users has also soared, reaching all-time highs.
In January 2024, there were 5.1 million unique DeFi users worldwide. By the end of July, this figure had more than doubled, reaching over 12 million. However, the real growth came in the final quarter of the year. In September, the DeFi space had 21.7 million unique users, the highest number this market has ever seen. Although the figure slightly decreased in October and November, it still stood at an impressive 20.7 million in December, reflecting a 300% year-over-year increase.
Graphics: Adobe Stock, charnsitr
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Source: focusonbusiness.eu