Ethereum liquid restaking drove DeFi TVL to $100B in first quarter

In the opening quarters of this year, the total value locked in decentralized finance experienced a near-doubling increase compared to the last three months, as per recent studies. This growth can be attributed in part to Ethereum’s liquid staking initiatives.

The total value locked in Decentralized Finance (DeFi) saw a significant jump from a low of $36 billion in Q4 2023, as reported by DefiLlama, to reaching nearly $97 billion during the first quarter of 2024. This marks an impressive 81% rise since the start of the year and brings the current value to a two-year high of $98 billion as of last week.

On April 18, Messari revealed slightly larger total value locked (TVL) amounts, acknowledging a 65.6% expansion in DeFi collateral over the past quarter. This growth, according to Messari, can be attributed mainly to rising prices of underlying assets and the practice of liquid restaking. In simpler terms, the TVL in decentralized finance (DeFi) grew by 65.6% between quarters, reaching $101 billion, primarily due to price increases in cryptocurrencies and the process of restaking liquidity.

“This uptick was primarily driven by asset price appreciation and liquid restaking, led by Ethereum’s TVL growth of nearly 71%.”

Ethereum liquid restaking drove DeFi TVL to $100B in first quarter

According to a report released on April 18 by QuickNode, a Web3 infrastructure and developer platform, and Artemis, an institutional crypto data platform, the research results were reflected in their findings as well.

“DeFi’s remarkable expansion in recent times can be attributed to staking, liquid staking, restaking, and liquid restaking. These processes have significantly fueled its growth. As a result, a substantial portion of DeFi’s total value locked (TVL) is now tied to staking.”

The total value locked in liquid staking reached an unprecedented peak of $63 billion on March 13, with the majority of this growth attributable to Lido, Ethereum’s dominant liquid staking platform, accounting for approximately two-thirds (62%) of the entire liquid staking market, as indicated by DefiLama.

During this timeframe, there was a significant increase in the adoption and demand for liquid staking platforms like EigenLayer. Notably, the total value locked (TVL) in EigenLayer grew an impressive 990% within the first three months of 2024, reaching a remarkable $12 billion by the end of the quarter.

EigenLayer allows ETH to be staked more than once for additional yields.

Ethereum liquid restaking drove DeFi TVL to $100B in first quarter

User activity on QuickNode surged by an impressive 291% between quarters, fueling anticipation for a potential “DeFi Summer 2.0” due to noticeable signs of expansion and significant change, even in the face of challenges from the SEC.

Despite the cryptocurrency market’s recent pullback, Decentralized Finance (DeFi) Total Value Locked (TVL) has decreased by 11% to reach a current figure of $86.6 billion.

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2024-04-19 10:29