Whether with crypto or “real” assets, Ethereum’s DeFi sector provides the foundation for financial applications for everyone. In February, the DeFi industry’s TVL Ethereum recorded massive growth and is aiming for similar highs at the end of the month to those seen in May 2021, the peak of the past DeFi boom.
Since a large part of the growth in US dollars is related to the increase in Ethereum’s price, it is worth taking a look at the TVL measured in ETH. This saw a continuous increase in February, indicating that more “real capital” is flowing into the DeFi sector again.
The reasons are obvious. Restaking on EigenLayer swallows more and more ETH and increases demand. Additionally, DeFi protocols are experiencing renewed interest due to a recent proposal in the Uniswap DAO. This provides for UNI owners to participate in the platform’s revenue. The prospect of a token dividend could increase the attractiveness of the entire DeFi sector if other DEXes and lending platforms also enable such profit sharing.
You can read about the current status of the DeFi top dog and which topics are now important for Ethereum in the new BTC-ECHO Ethereum Report.
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