DeFi TVL Reaches 31-Month Highs as Market Cap Surpasses $3.7 Trillion

The cryptocurrency and decentralized finance (DeFi) sectors have been experiencing remarkable growth over the past month, marking significant milestones for both industries.

DeFi’s Total Value Locked (TVL) has surged to a 31-month high, reaching $134.7 billion, according to data from DeFi Llama. This represents a growth of approximately $47 billion over the last 30 days, bringing the TVL to levels not seen since May 2022. The DeFi daily trading volume is also impressive, currently sitting at $16 billion, highlighting the robust activity in the decentralized finance space.

Several leading protocols have contributed to this surge in TVL:

• Lido, the leading DeFi and liquid staking protocol, saw its TVL surpass $36 billion, thanks to a 50% increase in the past month.
• AAVE, the top lending protocol, also posted strong gains, with its TVL reaching $20.6 billion after a 54% rally over the last 30 days.
• EigenLayer, an Ethereum-based restaking protocol, experienced a remarkable 64% increase in its TVL, pushing it to $17.1 billion during the same period.

Ethereum continues to dominate the DeFi space, with its TVL reaching $72.9 billion, followed by TRON at $13.6 billion, according to DeFi Llama.

Beyond the DeFi space, the broader crypto market has also seen significant bullish momentum, particularly since the U.S. elections in November. The global crypto market cap has risen by $1.33 trillion in the last 30 days, setting a new all-time high of $3.73 trillion.

Bitcoin, which currently holds a 51.3% dominance over the broader market, continues to lead the charge, with its performance helping drive the overall growth. The daily crypto trading volume has reached an impressive $418 billion, further demonstrating the strong interest and activity in the crypto market.

In addition to the positive market movements, Matrixport analysts have suggested that President-elect Donald Trump’s pro-crypto stance could further fuel growth in the U.S. DeFi space. Trump’s inauguration, scheduled for January 20, 2025, is expected to be a catalyst for more favorable regulatory policies for cryptocurrencies, potentially adding more momentum to the market.

In summary, both DeFi and the broader cryptocurrency market are experiencing significant growth, driven by increasing TVL, strong trading volumes, and the potential for supportive regulatory changes in the future. The current bullish sentiment suggests that these trends could continue, with both sectors poised for further expansion.