DeFi sector has just reclaimed 2022 highs, with Ethereum asserting its dominance
The post DeFi sector has just reclaimed 2022 highs, with Ethereum asserting its dominance appeared on BitcoinEthereumNews.com.
The Ethereum-dominated DeFi sector has been growing by leaps and bounds, and according to data from Defillama, the total value locked (TVL) in the sector has once again reclaimed 2022 highs. The surge coincides with what Kobeissi analysts are calling the “LARGEST short squeezes in crypto history” as ETH continues to inch closer to all-time high levels. Source: Defillama DeFi finally recovers from the market crash of 2022 The DeFi sector faced significant challenges in 2022 that have held it down until this year. There was a whopping $3.6 billion lost to hacks, compounded by the market crash that followed the collapse of FTX and Terra Luna, crypto behemoths at the time. While activity continued, the total value locked (TVL) fell drastically. However, DeFi TVL is now reclaiming highs from 2022. DeFi lending has also seen significant growth. Open borrows have crossed the $19 billion mark by Q4 2024 and active loans have also recovered, particularly on chains like Aave and Ethereum. On Ethereum, loans peaked at $22.6–$24 billion this year, with over $35 billion in collateral locked, which analysts have taken as a sign of renewed investor confidence. Some important factors encouraging the sector’s recovery include increased maturity of the crypto market, growing popularity of decentralized exchanges and lending protocols, and the emergence of liquid staking platforms. Furthermore, investors see the US’ loose monetary policy and potential interest rate cuts as positive catalysts for the broader crypto and DeFi markets. Ethereum is leading the DeFi charge Ethereum is currently dominating the DeFi sector, hosting over 60% of DeFi assets and more than half of all stablecoins. Source: Defillama Ethereum’s market cap has increased by over $150 billion since July 1, days after net short exposure hit record highs. The total DeFi TVL on the chain is currently above $80…
