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The total value locked or TVL of the decentralized finance (DeFi) sector has experienced impressive growth in recent weeks. Specifically, since Donald Trump’s victory in the US presidential elections, interest in the sector has not stopped growing.
According to data from DeFiLlama, the TVL (which is the equivalent of assets under management or AUM of TradFi) is going through a rally. As of 31 months ago, on May 8, 2022, blockages did not reach the level of $137 billion in decentralized finance.
Likewise, in the last 30 days, the sector added approximately $50 billion in blocks. There are several reasons why this increase in interest in DeFi reaches this insane level. All of these reasons are directly related to the new political reality within the United States.
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Mainly, the fact that Donald Trump’s government is preparing to announce the beginning of the process of creating a crypto regulation stands out. Although the creation of the bill and the approval process may take time, this is a certain fact. The latter becomes a huge motivation, given that the market will be completely legal in the country.
In this context, the riskiest capitals seek to take an early pole position to get the most out of it. In this context, the insane growth of TVL in the DeFi sector in recent weeks is explained.
The TVL of DeFi reaches levels not seen since May 2022. Source: DeFiLlama
Will DeFi TVL hit new all-time highs?
The fact that DeFi will set new all-time highs in TVL is unquestionable. The growth in interest in recent months suggests that the pace will be maintained and could even increase considerably. In that sense, reaching the 2021 highs would be a matter of time before it materialized.
It is worth mentioning that the sector’s ATH was reached on November 8, 2021, when a TVL of $179 billion was recorded. In this way, about $42 billion separates DeFi from its all-time highs in locked capital. The assumption that this maximum will be comfortably exceeded is based on the aforementioned regulation.
It is important to mention that the leading protocols are experiencing enormous growth in their market position. Thus, the liquid staking platform, LIDO, enjoys a growth of 42.76% in its TVL during the last 30 days ending this December 7. Meanwhile, the Aave lending platform grew 47.17% in that same period.
Among the most formidable cases of growth, the +74.60% of the Spark lending protocol and the 84.96% of Ethena stand out. In the field of blockchains, Ethereum stands out for its extensive dominance of the TVL of the DeFi sector, with $78.7 billion. Second place is occupied by the Solana network, with $9.44 billion.
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