DeFi Grows 2,5x in 2024 with New Players

• DeFi to grow 2,5x in 2024, diversifying beyond Ethereum.
• Bitcoin and Solana gain ground with new DeFi solutions.
• Ethereum maintains leadership due to staking and ERC-20 liquidity.

The decentralized finance (DeFi) market has seen significant expansion in 2024, registering a 2,5x growth compared to the previous year. However, Ethereum’s (ETH) dominance in the space has declined, despite maintaining the lead in total value locked (TVL). While ETH still supports over $70 billion in collateral in the DeFi ecosystem, yours market share fell to 72,2% by the end of 2023, highlighting the rise of other networks.

DeFi TVL Landscape 2021-2024

The DeFi TVL landscape has undergone significant shifts this year. The rapid development of Bitcoin restoring protocols has driven a substantial surge in TVL. @solarium is emerging as a strong contender to Ethereum. Meanwhile, Base, Hyperliquid, Sui,… pic.twitter.com/CPoo5hhq21

— CryptoRank.io (@CryptoRank_io) December 24, 2024

The emergence de New blockchains and the strengthening of existing chains have driven this diversification. BNB Chain has maintained its position with 4,5% of the DeFi market, while Solana has expanded its share from 3,6% to 6,7% in 2024, leveraging DEX activity and initiatives such as liquid staking. Additionally, Bitcoin has entered the DeFi scene with Babylon Labs dominating this segment, holding $5,59 billion in self-custodied BTC.

Other players, such as TRON, have consolidated their presence, accounting for 6% of the DeFi market, thanks to the growth of collateralized lending and a strong liquidity base of stablecoins. In parallel, Arbitrum, Base, Sui and Aptos have emerged as promising alternatives to Ethereum, offering low-cost solutions and technological innovation.

Ethereum, however, remains a mainstay in the sector due to the widespread adoption of applications that rely on large collateral, such as LidoDAO, a leader in liquid staking, and Aave, a leading lending protocol in 2024. In addition, the expansion of the ERC-20 Tether (USDT) supply to 79,92 billion tokens has bolstered the network's liquidity.

The diversification of the DeFi market reflects the growing maturity of the sector, providing more options for users and investors. However, challenges related to security, scalability, and regulation remain barriers to overcome as the sector seeks to further expand its global relevance.