Daily Archives: 18. Januar 2023

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DeFi TVL Surges 20% in 2021: Liquid Staking Protocols Dominate Market Share

• DeFi TVL has surged nearly 20% since the start of 2021, reaching its highest point in the past two months.
• Major DeFi protocols such as Lido Finance and MakerDAO have played a significant role in the DeFi TVL rise.
• Liquid staking protocols, like Lido Finance, have contributed the most to the DeFi ecosystem surge, dominating the DeFi market share.

The Decentralized Finance (DeFi) industry has seen a surge in its Total Value Locked (TVL) in 2021, reaching its highest point in the past two months. This surge is largely attributed to the increased popularity of liquid staking protocols like Lido Finance, which have contributed the most to the DeFi ecosystem by dominating the DeFi market share.

The DeFi industry has experienced a period of growth since the start of 2021, with the total value locked (TVL) increasing by nearly 20%. This surge was driven by major protocols such as Lido Finance and MakerDAO. Lido has seen double-digit gains over the past week, adding $8.4 billion to the DeFi ecosystem since its lower low late last year. Meanwhile, MakerDAO has seen a surge in its TVL, largely due to its stablecoin, Dai, which serves as a popular medium of exchange in the DeFi space.

The surge in TVL is largely attributed to the increased popularity of liquid staking protocols, such as Lido Finance. This is due to the Ethereum Merge, which triggered the popularity of these protocols. Following the merge, the total ETH locked in DeFi protocols exceeded $45 billion, with Lido Finance leading the way. Lido Finance now has a market share of 14.75%, leaving the former king of DeFi, MakerDAO, behind with a share of 13.25%, according to DeFiLlama.

The surge in DeFi TVL is a positive sign for the Web3 space, and could indicate a larger bull run in the coming months. While DeFi TVL is still far from its all-time high seen in 2021, it is encouraging to see that the DeFi space is recovering from the bear market and continuing to grow. With new innovations and protocols popping up in the DeFi industry, the ecosystem total value locked (TVL) could continue to increase as the Web3 space continues to evolve.