Key Takeaways

DeFi's TVL hit $138 billion in July, a 57% increase since April.
Ethereum remains the dominant force, controlling nearly 60% of the DeFi ecosystem.
The growth is driven primarily by lending, liquid staking, and restaking sectors.
Aave, Lido DAO, and EigenLayer are significant players in this revival.
Ethereum shows robust fundamentals, supporting the DeFi ecosystem's expansion.

The DeFi landscape is seeing a notable revival, with the total value locked recently reaching $138.5 billion—its highest level since May 2022, according to DeFiLlama. This represents an impressive 57% increase from the April low of $87 billion, suggesting a substantial shift in market sentiment.

Institutional interest in DeFi is rising, retail users are gradually returning, and Ethereum continues to be the leading blockchain, holding nearly 60% of the ecosystem's value. Although still 30% below its all-time high from nearly four years ago, DeFi’s recent growth is a promising indicator.

The resurgence is not uniform but is predominantly powered by three key sectors: lending, liquid staking, and the rapidly emerging restaking category.

Aave [AAVE], a well-respected lending platform in the DeFi space, has surpassing $50 billion in cumulative deposits, establishing itself as a fundamental part of market infrastructure. Lido DAO [LDO] remains the leader in Ethereum liquid staking, securing over $32 billion in assets. Meanwhile, EigenLayer has emerged as an innovative player in restaking, attracting nearly $17 billion in TVL.

Collectively, these three protocols account for about $50 billion, which is over one-third of DeFi's total locked value.

Much of DeFi's revival can be linked back to Ethereum, which serves as the backbone for both infrastructure and innovation within the ecosystem. Since January 2024, the value of tokenized real-world assets (RWAs) on Ethereum has surged nearly 20 times, largely due to traditional asset managers moving their investment products on-chain.

Ethereum's underlying fundamentals are equally robust: it boasts a total value locked of over $270 billion, with $137 billion in stablecoins, $120 billion staked, and nearly $40 billion in liquid staking. Moreover, DEX (decentralized exchange) volume is approaching half a trillion dollars this year, solidifying Ethereum's dominance in the finance sector.

The DeFi space is on an upward trajectory, and its growth reflects increasing confidence among investors and a strong foundation laid by Ethereum and its supporting protocols. As these trends progress, we may witness an even more vibrant DeFi landscape in the near future.

Breaking down the $138 mln DeFi revival that no one saw coming

On July 18th, the total value locked (TVL) in DeFi protocols reached an impressive $138 billion, marking a significant 57% increase since April. While we may not see the euphoria of 2021 just yet, the momentum is undeniable.

With Ethereum [ETH] reclaiming its top position, institutional investments flowing in, and promising areas like liquid staking and restaking emerging, DeFi may be on the verge of another major breakthrough.