DeFi Lending Volumes Return to Pre-2022 Crisis Levels
Date: 2024-08-05 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The decentralized finance (DeFi) sector is showing significant growth, as confirmed by the latest data from analysts. The Token Terminal platform reported that DeFi lending volumes have returned to pre-crisis levels in early 2022, in parallel with the growth of assets under management of DeFi protocols.
Lending Volumes Return
Analysts from the Token Terminal platform said that the DeFi sector is “waking up again”. As evidence, statistical data was published on various areas of this segment. One of the charts concerns DeFi lending volumes. According to Token Terminal, the size of active loans has reached the pre-crisis 2022 level and is at $13.3 billion. This indicator is key to assessing DeFi's participation in the overall situation on the crypto market.
Earlier, analysts recalled that the historical maximum for active loans in the DeFi segment was recorded in 2021, when their volume reached $22.2 billion. However, by March 2022, lending volumes fell to $10 billion, and in January 2023, they collapsed to $3.1 billion. Over the past seven months, the volume of active loans in DeFi has grown significantly, returning to pre-crisis levels.
A similar situation is observed in relation to the total amount of locked funds (TVL) in the decentralized finance segment. According to DeFiLlama, TVL was $180 billion in November 2021, but by October 2023 it had fallen by 80%, reaching $37 billion. However, since November 2023, the sector's TVL has shown significant growth. During this period, the indicator has increased by 160% and at the time of writing is $96.5 billion. Moreover, in the first half of 2024, the total TVL of the segment doubled, reaching $109 billion in June.
Conflicting Data
Analysts' enthusiasm for the growth of the DeFi sector is overshadowed by statistics from CoinGecko. According to it, most of the DeFi-related tokens are still at levels close to the 2022 crisis indicators. In addition, the market capitalization of the DeFi sector is only 3.4% of the total crypto market.
Despite the growth in lending volumes and TVL, the DeFi sector faces challenges. The recovery of the segment has not yet been reflected in the value of most tokens associated with it, indicating the need for further analysis and adaptation of strategies. Nevertheless, the return to pre-crisis levels of lending volumes and the growth of TVL are positive signals for market participants and investors.
