DeFi TVL Hits Two-Year High as Liquid Restaking Protocols Propel Growth

DeFi has undergone an astronomically high rise in TVL during the first quarter of 2024, nearly doubling its figures. DefiLlama’s statistics reveal an astounding rise in DeFi TVL from Q4 2023 lows of $36 billion to the almost $97 billion mark at the end of Q1 2024, showing an 81% hike for the year, states DefiLlama stats. An April 18 report from Messari indicated a TVL of $101 billion. Interest in asset price appreciation and liquid restaking protocols were indicated as some of the factors to be credited.

Ethereum’s Liquid Staking Dominance

Ethereum was the main factor in this rate boom, where its TVL reached an attitude of more than 70%. Liquid staking protocols such as Lido are unavoidable, as they are among the leading liquid staking protocols with a whopping 62% market share, based on DefiLlama data. Lido is a good example of that, and its TVL hit a record high of $63 billion on March 13, which proves its success in this sphere of liquidated staking.

EigenLayer Emerges as Liquid Restaking Leader

Unexpected jumps in TVL, like seen on EigenLayer, an initiative that closed the quarter with a $12 billion TVL with a 990% increase, will also be noticed in the liquid restaking arena. Similar to EigenLayer’s innovative approach, the ability to stake ETH multiple times necessitates new deposits, generates additional yields, and attracts a multitude of users daily.

Together with the rise in DeFi TVL, the platform has demonstrated impressive growth in user activity, which is reported by QuickNode, showing a histogram jump of 291% quarter-on-quarter. The following avalanche of activity could be a telltale sign of a second ‘DeFi Summer’, marking it as a time marked for growth and development, notwithstanding the obstacles posed by regulatory entities like the SEC.

On the other hand, the last TVL appeal to DeFi was about a 11% cut, and the price stands at $86.6 billion. Despite these temporary setbacks, liquid restaking protocols like Lido and Eigenlayer propel the underlying momentum, revealing a DeFi system with substantial resilience and poised for further growth and innovation.