DeFi market assets under custody recover to $50 billion for the first time in 6 months | CoinDesk JAPAN

• TVL (values ​​under custody) in the DeFi market increased by more than $15 billion in six weeks.
• Rising asset prices and new capital inflows combined to contribute to the rise.
• The value of several Solana-based protocols has increased by as much as 120%, and newly announced layer 2 platform Blast has received over $700 million in deposits.

The total amount of assets locked or staked in a decentralized finance (DeFi) protocol (Total Value Locked: TVL, assets under custody) increases rapidly in the value of the underlying asset, and the yield of the crypto assets (virtual currency) held by investors increases. As a result, on December 5th, it reached $50 billion (approximately 7.5 trillion yen, exchanged at 1 dollar = 150 yen) for the first time in six months.

That figure has increased by $15 billion since October 13, when the sector was at a multi-year low, according to data from DefiLlama.

The search for yield continued last week, with traders and investors undeterred by the fact that Blast, a newly announced Layer 2 project scheduled to come online in 2024, will not be able to withdraw its assets until at least March. He received more than $700 million (approximately 105 billion yen) in funds from his home.

DeFi TVL (Assets Under Custody) and Volume (DeFiLlama)

Since October 13th, Ethereum (ETH), the main crypto asset used across the DeFi market, has risen 42%, outpacing the overall DeFi market, which has risen 41%. Notably, a significant portion of DeFi protocols offer yield on stablecoins pegged to traditional fiat currencies such as the dollar, euro, and pound.

Trading volume is also increasing. More than $5.4 billion (about 810 billion yen) was traded in a single day last month, the most since March.

The sector saw a boost earlier this year as a result of Ethereum’s move to proof-of-stake. This shift has fueled the popularity of the liquid staking market, led by Lido and RocketPool, which account for 45% of DeFi TVL.

Lido currently offers an annual yield of 3.7%, while Rocketpool offers 3.92%. Liquid staking is a form of derivative that allows investors to generate yield from staking Ethereum while receiving tokens that can be used elsewhere in the DeFi ecosystem.

The TVL of Solana-based protocols marginfi, Jito, and Marinade Finance has surged between 60% and 120% in the past 30 days as institutional interest in Solana continues to grow. Grayscale’s Solana Trust traded at an 869% premium last month, indicating strong demand from the institutional market.

Solana’s liquid staking protocol, Jito, offers a yield of 6.96%, a level that has led to $327 million in inflows since October 13th.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: DefiLlama
｜Original text: DeFi Market Rebounds to $50B as Speculators Hunt for Yield