Ethereum’s decentralized finance (DeFi) ecosystem is experiencing a resurgence. Here are the leading coins poised to benefit from this revival.
Ethereum Dominates the DeFi Space
A recent report underscores that DeFi is synonymous with Ethereum, which holds nearly 70% of the sector’s capital. The total value locked (TVL) on Ethereum is approaching $100 billion, highlighting its dominance in the DeFi landscape.
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Recovery and Growth in the DeFi Sector
The DeFi industry faced a significant setback following the Terra collapse in May 2022. However, since the start of 2024, there has been a notable recovery. The following chart illustrates this comeback, with a potential breakthrough to previous all-time highs anticipated, particularly with the upcoming ETF launch. Rising Ethereum prices could further elevate the DeFi ecosystem, drawing institutional investors to its most popular financial applications.
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Leading DeFi Projects on Ethereum
The total capital in the DeFi sector has rebounded to around $97 billion. The top DeFi projects on Ethereum include:
- Lido: Leading the liquid staking space with a TVL of $29.52 billion.
- EigenLayer: Holding a TVL of $13.98 billion.
- Aave: A premier lending protocol on the Ethereum mainchain and various ETH L2 networks, with a TVL of over $9.88 billion.
- MakerDAO: Known for the stablecoin DAI, with a TVL exceeding $7.31 billion.
- EtherFi: A restaking project with a TVL around $5.67 billion, which recently conducted a significant airdrop of ETHFI tokens to its users.
Dominance of Staking Projects
Projects offering staking or restaking are currently dominant on Ethereum’s mainchain (L1). This trend might be attributed to the high reliability and security of L1. Unlike decentralized exchanges like Uniswap or crypto gaming applications, platforms like Lido benefit from less dependency on fast and inexpensive transactions.
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