Here's how Ethereum is boosting DeFi: +100 billion dollars locked!

The first quarter of 2024 was marked by a spectacular rebound in DeFi. The latter displays a TVL exceeding $100 billion. This resurgence is attributed to several factors, including Ethereum liquidity buyback initiatives.

DeFi: TVL reaches $101 billion in the first quarter of 2024 thanks to Ethereum

Ethereum to the rescue of DeFi

The decline in cryptocurrency prices in the second half of 2022 had a negative impact on DeFi. This resulted in a significant drop in TVL. From the fourth quarter of 2023, however, signs of recovery have appeared. This is notably due to the price increase of Ethereum.

This tendency increased in the first quarter of 2024, with the implementation of Ethereum liquidity redemption strategies by key players in the crypto market.

Ethereum staking: a growth engine for DeFi

Staking (or staking) consists of blocking crypto-assets for:

  • participate in the transaction validation process
  • get rewards.

Lately it has become a pillar of DeFi.

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Liquid staking allows users to maintain their spending power while earning interest on their staked assets. This practice has grown in popularity. Lido, a liquid staking protocol for Ethereum, played a major role in this evolution. It has captured more than 60% of the liquid staking market share.

EigenLayer: the new rising star in the Ethereum universe

In addition to staking, liquidity restoration protocols have also contributed to the growth of the TVL of the DeFi market. We mainly refer to EigenLayer, which allows users to stake their Ethereum multiple times, thus increasing their potential yields. This innovative approach has attracted many investors, propelling EigenLayer's TVL to $12 billion in the first quarter of 2024.

In any case, the meteoric rebound of DeFi in the first quarter of 2024 demonstrates the resilience and potential of this innovative sector.

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