• DeFi TVL has surged nearly 20% since the beginning of 2021.
• Major DeFi protocols such as Lido Finance and MakerDAOhave significantly contributed to the DeFi ecosystem.
• Liquid staking protocols such as Lido Finance are the accelerators of the DeFi surge, with 14.75% dominance in the DeFi market.
The Decentralized Finance (DeFi) ecosystem has been one of the most active and consistently growing areas of the Web3 space for the past few years. Despite a bear market in 2020, DeFi TVL (Total Value Locked) continues to grow, and recently surpassed its highest point in the past two months. This surge in DeFi TVL has been driven by major protocols such as Lido Finance and MakerDAO, which have contributed significantly to the growth of the ecosystem.
Lido Finance is leading the charge in the DeFi surge, and has added $8.4 billion to the DeFi ecosystem since its lower low late last year. This is due in large part to the Ethereum Merge, which has triggered the popularity of liquid staking protocols such as Lido Finance. As a result, Lido Finance now has a 14.75% dominance in the DeFi market, leaving MakerDAO behind with a 13.25% share.
The mini bull run of 2021 has been a major catalyst for the DeFi surge, as most of the underlying DeFi tokens have followed suit. However, despite the surge, DeFi TVL is still far from its all-time high seen in 2021. In order to continue to grow, DeFi protocols need to focus on providing better user experiences, as well as building trust in the protocol.
The DeFi ecosystem has come a long way since its inception, and its growth is set to continue in 2021. With more protocols launching, and more investors entering the space, DeFi is sure to continue to gain traction and TVL. Ultimately, DeFi is a powerful tool that has the potential to revolutionize the way we interact with money and financial services, and this surge in TVL is just the beginning.