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DeFi on Ethereum is growing

Whether crypto or "real" assets, Ethereum's DeFi provides the basis for financial applications for all.

By Luc Vesters
• 2 min read
DeFi on Ethereum is growing

Whether crypto or "real" assets, Ethereum's DeFi provides the basis for financial applications for all. In February, DeFi's TVL Ethereum saw tremendous growth and is aiming for similar highs by the end of the month to May 2021, the peak of the last DeFi boom.

Since much of the growth in U.S. dollars is related to Ethereum's price appreciation, it is worth looking at TVL measured in ETH. This saw a steady increase in February, indicating that more capital is flowing back into the DeFi.

Total value locked of the DeFi in U.S. dollars. Source: DefiLlama

Total value locked of the DeFi in U.S. dollars. Source: DefiLlama

The reasons are obvious. Restaking on EigenLayer is gobbling up more and more ETH and increasing demand. In addition, DeFi protocols are experiencing renewed interest due to a recent proposal in the Uniswap DAO. This envisions giving UNI holders a share of the platform's proceeds. The prospect of a token dividend could increase the attractiveness of DeFi as a whole if other DEXs and lending platforms also activate such profit-sharing schemes.

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