Ethereum

2024

Universe

DeFi

<p>The first quarter of 2024 has been marked by a spectacular rebound in DeFi. It now boasts a TVL (Total Value Locked) exceeding $100 billion. This resurgence is attributed to several factors, including Ethereum liquidity buyback initiatives.</p>
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     <p lang="en" dir="ltr">In Q1 2024, the trend of DeFi went in one direction, up <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/2b06.png" alt="⬆" class="wp-smiley" style="height: 1em; max-height: 1em;"><br><br>DeFi TVL increased by 65.6% QoQ to reach $101 billion, this uptick was primarily driven by asset price appreciation and liquid restaking.<br><br>Explore the full report on the State of DeFi <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/2b07.png" alt="⬇" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/6ZoyFJTv6w" rel="noopener noreferrer nofollow">https://t.co/6ZoyFJTv6w</a> <a href="https://t.co/awOtGZV5u1" rel="noopener noreferrer nofollow">pic.twitter.com/awOtGZV5u1</a></p>— Messari (@MessariCrypto) <a href="https://twitter.com/MessariCrypto/status/1781054967161254399?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 18, 2024</a>
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  DeFi: TVL reaches $101 billion in the first quarter of 2024 thanks to Ethereum
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<h2 id="h-ethereum-to-the-rescue-of-defi">Ethereum to the Rescue of DeFi</h2>
<p>The decline in cryptocurrency prices during the second half of 2022 negatively impacted DeFi, resulting in a significant decrease in TVL. However, signs of recovery emerged in the fourth quarter of 2023, particularly due to the rise in Ethereum’s price.</p>
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<p>This <a href="https://cointelegraph.com/news/ethereum-liquid-restaking-drove-defi-tvl-first-quarter" target="_blank" rel="noopener noreferrer nofollow">trend</a> intensified during the first quarter of 2024, with the establishment of <strong>Ethereum liquidity buyback strategies</strong> by key players in the cryptocurrency market.</p>
<h2 id="h-ethereum-staking-a-growth-engine-for-defi">Ethereum Staking: A Growth Engine for DeFi</h2>
<p>Staking (or yield farming) involves locking up crypto assets to:</p>
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 <li>participate in the transaction validation process</li>
 <li>earn rewards.</li>
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<p>It has recently become <strong>a pillar of DeFi</strong>.</p>
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<p>Liquid staking allows users to maintain their spending power while earning interest on their staked assets. This practice has seen rising popularity. <strong>Lido</strong>, a liquid staking protocol for Ethereum, has played a significant role in this evolution by capturing over 60% of the market share in liquid staking.</p>
<h2 id="h-eigenlayer-the-rising-star-in-the-ethereum-universe">EigenLayer: The Rising Star in the Ethereum Universe</h2>
<p>In addition to staking, liquidity restoration protocols have also contributed to the growth in DeFi’s TVL. This is particularly the case with EigenLayer, which allows users to <strong>stake their Ethereum multiple times</strong>, thus increasing their potential returns. This innovative approach has attracted many investors, propelling EigenLayer’s TVL to $12 billion in the first quarter of 2024.</p>
<p>In any case, the explosive rebound of DeFi in the first quarter of 2024 demonstrates the resilience and potential of this innovative sector.</p>
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Here’s how Ethereum boosts DeFi: +100 billion locked dollars!

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