DeFi Sector Nears Peak TVL Despite Fall in Daily Active Users
The decentralized finance (DeFi) sector is nearing its old peak in terms of Total Value Locked (TVL), with bridges like WBTC performing strongly. However, the number of Unique Active Wallets (UAWs) has decreased by 21% to 1.75 million daily UAWs, indicating a shift in growth dynamics.
The DeFi ecosystem's growth is primarily driven by increasing token prices, particularly Ethereum, rather than a surge in user numbers. Key players include DeFi Technologies, a Canadian-listed financial services provider, Valour, its digital securities subsidiary, and Hyperliquid, a decentralized exchange that launched the USDH stablecoin.
Not all DeFi categories are contributing equally to this growth. Lending and Loans are thriving, with Lending's TVL at 35 billion, close to its 50 billion peak, led by AAVE. Restaking, a newer category, is taking off with two categories reaching 20 and 15 billion TVL respectively. Meanwhile, Decentralized Exchanges (DEXes) and Collateralized Stablecoins (CDP) are not as strong.
Different sources report varying TVL figures for the DeFi ecosystem. DeFiLlama estimates 102 billion, TheBlock around 112 billion, and DappRadar noted 192 billion in a May report. CDPs, mainly Maker (DAI dollar), remain relatively stable at 10 billion dollars, with only slight growth this year.
Despite a decrease in daily active users, the DeFi sector is approaching its old highs in terms of TVL, driven by token price increases. Key categories like Lending and Loans are performing well, while others like DEXes and CDPs show less strength. The TVL estimates vary among different sources, indicating a need for standardized tracking.
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