The post Ethereum DeFi ecosystem suffers contraction, TVL down to $47 billion in 2024 appeared on BitcoinEthereumNews.com.

Quick Take The total value locked (TVL) in Ethereum’s DeFi ecosystem stands at $47 billion in 2024, a decrease from its peak of $66 billion earlier this year, according to Glassnode. This marks a stark contrast to the peak of 2021, where the TVL hit $110 billion, coinciding with Ethereum’s price reaching over $4,700. In 2024, the highest price Ethereum has achieved is around $3,800, representing roughly a 20% decrease from its 2021 peak. However, the drop in TVL is even more pronounced, showing a roughly 40% decline. ETH: Total Value Locked in DeFi: (Source: Glassnode) This disparity highlights the strong correlation between Ethereum’s price and its TVL, as the latter is denominated in USD. Logically, with a 20% lower price in 2024 compared to 2021, the TVL should have been approximately $88 billion. Yet, the actual TVL is significantly lower, spotlighting other factors influencing DeFi activity. According to Defi Llama, the total value locked across all blockchains is approximately $82 billion, with Ethereum dominating the space. Notably, Tron holds about 10% of this market, and Solana accounts for roughly 5%, showing the growing diversity within the DeFi landscape beyond Ethereum. Total Value Locked All Chains: (Source: Defillama) The post Ethereum DeFi ecosystem suffers contraction, TVL down to $47 billion in 2024 appeared first on CryptoSlate. Source: https://cryptoslate.com/insights/ethereum-defi-ecosystem-suffers-contraction-tvl-down-to-47-billion-in-2024/

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Filed under: News - @ September 3, 2024 11:25 am