At the beginning of 2022, the DeFi sector appears to be picking up momentum as it created a bull market in early 2021.
Data from crypto market research firm Messari shows that in the past 30 days, tokens on five of the top 10 DeFi protocols have risen by double digits despite the troubles Bitcoin has faced in the crypto market.
Top 10 DeFi Properties | Source: Messari
A deeper dive into the data reveals that Aave (AAVE), Curve (CRV) and Spell Token (SPELL) outperformed the rest, but what’s behind those bullish breakouts?
In the case of AAVE, the introduction of Real World Assets (RAW) to the protocol on December 28th marks the next step in DeFi capabilities. Users can now borrow against cryptographic forms of traditional assets such as real estate, merchandise, freight bills and Record prepayments.
The integration of stablecoins into the DeFi ecosystem of Curve and Abracadabra.Money has strengthened their status as an integral part of DeFi and is reflected in the price growth of their native tokens.
Incremental statistics highlight the strength of DeFi
Further evidence of the growth dynamics in the DeFi space can be found in various metrics within the ecosystem, including active users and Total Value Locked (TVL).
According to data from Dune Analytics, the number of unique users in DeFi has increased further and is currently at a record high of 4,304,478 unique wallets.
Total number of DeFi users over time | Source: Dune Analytics
Activities on decentralized exchanges (DEXs) have also increased in recent months. Data from Dune Analytics shows May 2021 will be the only month with higher DEX trading volumes than November and December 2021.
Monthly trading volume of DEXs by project | Source: Dune Analytics
To see how much the entire DeFi ecosystem has grown over the past two years, the trading volume on DEXs in the first four days of January exceeded the volume of all of July 2020 is starting to gain momentum.
TVL is approaching its all-time high
Overall, across all protocols, TVL is one of the best metrics for measuring DeFi’s growth and development.
TVL in DeFi | Source: Defi Lama
According to data from Defi Llama, the current TVL of all DeFi is $ 243.24 billion, $ 15 billion below the all-time high (ATH) of $ 259.41 billion as of December 2, 2021.
The leading protocols in terms of TVL are Curve at $ 23.79 billion, Convex Finance at $ 20.41 billion, MakerDAO at $ 17.14 billion, and AAVE at $ 13.72 billion.
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