TVL Growth: A Key Indicator of Market Recovery

As of December 6, 2024, the total value locked (TVL) in multi-chain DeFi is $134.6 billion, an increase of over 59% from the $84.6 billion level in August. Although this figure is still 38% below the historical peak of $186.8 billion reached in December 2021, it has shown a clear upward trend, partly attributable to the widespread increase in asset consolidation, such as the new highs in wrapped assets like Ethereum and Bitcoin. Additionally, favorable external cryptocurrency policies have contributed to this upward trend. The lending volume—measuring the value of unpaid debts in lending protocols—is currently $18.8 billion. This is nearing the peak levels of $20 billion seen in March and November 2021. The rising demand for loan leverage has directly contributed to the prosperity of the DeFi ecosystem.