Total Value Locked and Tokens Surge as DeFi Rebounds in 2023

Total Value Locked and Tokens Surge as DeFi Rebounds in 2023

The total value locked and tokens surged as Decentralized Finance (DeFi) rebounded in 2023. The Decentralized Finance (DeFi) protocols held about USD 163 billion in total value locked (TVL) on April 3, 2022. However, the amount fell to USD 38.30 billion at the beginning of January 2023. The leading DeFi tokens in April 2022 were collectively valued at USD 135 billion, and their total value declined to USD 33.9 billion on January 1, 2023. However, the indicators have witnessed an uptick trend during the past year. The TVL has moved up by 39.16%, and the market valuation of the top DeFi tokens has increased by more than 129% in the last 12 months.

DeFi Witnesses Dramatic Recovery and Growth in 2023

The Decentralized Finance (DeFi) segment has witnessed consistent growth during 2023. The total value locked (TVL) in DeFi stands at about USD 53.30 billion now, rising from a low of USD 33.9 billion.

The impressive 39% increase also adds USD 19.4 billion to the DeFi segment. The leading DeFi protocols include Lido, Maker, Aave, Justlend, and Uniswap in terms of the TVL size.

Liquid staking DeFi protocol, Lido holds the lion's share of the TVL in DeFi, totaling USD 20.82 billion, which amounts to 39% of the combined TVL in the DeFi ecosystem. Ethereum leads with 53.93% of the total value locked on its blockchain on DeFi.

Tron follows with a significant 15.27%, while Binance Smart Chain (BSC) holds 5.97% of the total locked value across the sector. The DeFi token crypto economy now commands a valuation of USD 78.03 billion in market capitalization, as reported by Coingecko.com.

The top-tier defi token market has expanded by USD 44 billion in the past year. STETH, LINK, DAI, UNI, and INJ are the leading DeFi tokens ranked as per market valuation.

The top five DeFi tokens at the close of December 2022 were STETH, DAI, UNI, LINK, and FRAX, respectively. DAI and FRAX are stablecoins, with DAI holding a stable market cap of USD 5 billion, while the current circulation of FRAX is USD 637 million, down from USD 1 billion. 

STETH stands at USD 2,268 now, having moved up from USD 1,185 on December 30, 2022. LINK is up to USD 15.54 from USD 5.45 last year. INJ has increased significantly from USD 1.29 per coin to USD 41.96, registering a stunning increase of 3,152%. The DeFi segment presents the story of recovery and cautious optimism in 2023.

Total Value Locked Expands to USD 53.30 Billion 

The total value locked expanding to USD 53.30 billion and DeFi tokens appreciating considerably during the year is the most important takeaway of the year. While the report card focuses on the current state of health and growth, the future of DeFi is open to several possibilities, reflecting the inherent dynamism and evolving nature of decentralized finance.

What is your take on the story of DeFi rebounding in 2023? Please share your thoughts and opinions about this subject in the comments section below.