FTX and bank failures are a tailwind for DeFi
Total assets locked in decentralized finance (DeFi) protocols across all blockchains hit $53.2 billion, the highest this year since before FTX’s collapse in early November 2022. It reached the level of This was revealed by data from Devillama, The Block, etc.
In May and June last year, the centralized organizations of Terra (Luna), Three Arrows Capital, and Celsius collapsed, which dealt a big blow to DeFi users, but things started to recover in the first half of this year. TVL once reached a high price in April, but then fell back and rose again from October, returning to the level before the FTX bankruptcy. The cause appears to have been that the market environment has deteriorated again since April, including the SEC’s lawsuit against Coinbase and Binance (June) and the Federal Reserve’s continued interest rate hikes.
On the other hand, the collapse of FTX and BlockFi led to a loss of trust in centralized organizations, and the Arbitrum (March) token airdrop became a turning point for more virtual currency users to use decentralized exchanges and DeFi lending and borrowing services. Along with this, trading volume appears to be recovering.
After the Arbitrum airdrop, expectations for airdrops on protocols such as zkSync, Starknet, and LayerZero have increased, supporting an increase in trading volume. Additionally, the revival of the Solana ecosystem since October has increased interest in non-EVM and EVM+ parallel processing blockchains, leading to an influx of funds into TVL of these non-EVM chains.
connection：Solana Blockchain’s record-setting index seen through data Background of SOL’s new year-to-date high price
There have been major upgrades in Ethereum this year, and TVL in the liquid staking space has also seen a significant increase in funding. In mid-April, Ethereum implemented a withdrawal function for staked ETH with the major upgrade “Shapella”.
connection: Ethereum “Shapella” mainnet implementation completed
Furthermore, the RWA field has become more prominent in this year’s DeFi scene, with MakerDAO’s use of $2.5 billion in real assets as collateral becoming a hot topic.
connection: Promote RWA tokenization Start of collateral settlement of BlackRock MMF
Improvements in DeFi’s UX and UI, as well as lower fees and further improvements in processing speed due to the expected next year’s Ethereum “Dencun” upgrade and the implementation of Solana’s “Fire Dancer” client, are expected to further expand the DeFi user base in the future. .
connection: Why is Solana’s “Fire Dancer” expected to be a game changer?
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