The Decentralized Finance (DeFi) market has experienced an impressive resurgence, reaching a significant milestone by locking in a total value of $50 billion. This achievement has been driven by a number of key factors that have revitalized this digital financial sector.
Decentralized Finance (DeFi) represents an alternative financial ecosystem built on blockchain technology that seeks to eliminate traditional intermediaries, such as banks and centralized financial entities.
In a span of six weeks, the total value locked in DeFi protocols has grown exponentially, totaling over $15 billion as of October 13, according DefiLlama official data.
This growth has been fueled by a rise in underlying asset prices and a flow of fresh capital into the DeFi ecosystem.
A crucial element of this rally for DeFi has been the outstanding performance of Solana-based protocols
Marginfi, Jito and Marinade Finance have shown impressive growth, with increases ranging between 60% and 120% in the last 30 days.
This rise has coincided with notable institutional interest in Solana, evidenced by Grayscale’s Solana Trust, which traded at an 869% premium last month.
Additionally, attention has been focused on innovative projects such as Blast, a recently announced layer 2 platform.
Despite restricting withdrawals until at least March next year, Blast has attracted more than $700 million in deposits from traders and investors, reflecting confidence and excitement around its potential.
Another fundamental aspect of this resurgence has been the rise of liquid staking, particularly on Ethereum.
Lido and RocketPool have been key players in this area, being responsible for 45% of the total value locked in DeFi.
Offering annual returns of around 3.7% to 3.92%, these protocols have attracted investors seeking returns in an increasingly dynamic cryptocurrency market.
In this climate of renewed interest, transaction volume has also seen a significant increase, surpassing $5.4 billion in a single day last month, the highest level since March.
