DeFi has been a buzzword in the cryptocurrency world for some time now. It refers to a financial system that operates on a decentralized blockchain network without intermediaries such as banks, brokers, or exchanges. DeFi has seen explosive growth in the past year, but the latest figures show that its total deposits or TVL (total value locked) remain below $50 billion.
According to the latest data from DeFiLlama on May 8, the size of the DeFi ecosystem is $48.6 billion. This represents a slight increase from the previous week, but overall, the TVL has remained below $50 billion. The TVL is the total amount of cryptocurrency that is locked in DeFi protocols.
Liquidity staking protocol Lido Finance is currently the market leader with a TVL of $12.2 billion, accounting for 25.09% of the market. Lido saw an increase of 2.42% in TVL for one week and 8.82% for one month. MakerDAO ($7.3 billion), Aave ($5.3 billion), Curve Finance ($4.3 billion), and Uniswap ($4.1 billion) complete the top five based on TVL.
However, the monthly trend is not uniform across all protocols. During the month, Lido and Uniswap experienced an increase in TVL, while the rest experienced a decrease in TVL.
Ethereum is the blockchain that accounts for the largest portion of the DeFi TVL standard. It accounted for more than 58% with about $28.3 billion. Tron (11%), BSC (9.66%), Arbitrum (5.02%), and Polygon (2.04%) followed.
Of the $49.31 billion of Ethereum deposited in DeFi, $16.416 billion (8.59 million ETH) is deposited in a liquid staking protocol. Liquid Ethereum staking protocols include Lido, Coinbase, Rocketpool, Frax, and Stakewise in order. Rocketpool and Frax saw impressive increases of 29.75% and 39.49%, respectively, over the 30-day period.
Ethereum-based protocols recorded the highest number with a total of 771. Binance Smart Chain (BSN) and Polygon-based protocols ranked second and third with 594 and 410, respectively.
Tron is the second-largest DeFi blockchain by TVL, but it has only 18 protocols. However, the number of daily users was the highest at 2,033,476, followed by BSC with 1.21 million and Bitcoin with 760,000. Ethereum ranked fifth with 279,400 daily users.
Overall, DeFi’s growth has been impressive, but it remains to be seen if it will surpass the $50 billion TVL mark in the coming weeks. The TVL is a crucial metric for measuring the health and growth of the DeFi ecosystem, and investors will be closely watching these figures in the coming days and weeks.
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