In 2024, the total value locked (TVL) within Ethereum’s DeFi ecosystem stands at $47 billion, a significant drop from its peak of $66 billion earlier in the year, as reported by Glassnode.
Comparing Peaks: 2021 vs. 2024
This current figure contrasts sharply with the peak TVL of $110 billion in 2021, which coincided with Ethereum’s price surging above $4,700. The highest price Ethereum has reached in 2024 is around $3,800, indicating a decrease of roughly 20% from its 2021 high. However, the decline in TVL is even more significant, showing an approximate 40% reduction.
The Correlation Between ETH Price and TVL
This difference underscores the strong correlation between Ethereum’s price and its TVL, both of which are denominated in USD. If Ethereum’s price were only 20% lower than in 2021, the TVL should logically be around $88 billion. Instead, the actual TVL is much lower, pointing to additional factors affecting DeFi activity.
Broader DeFi Landscape Beyond Ethereum
Defi Llama reports that the total value locked across all blockchains is approximately $82 billion, with Ethereum leading the space. However, other blockchains are also making their mark, with Tron capturing about 10% of the market and Solana accounting for roughly 5%, illustrating the growing diversity within the DeFi ecosystem beyond Ethereum.
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