Defi Witnesses Dramatic Recovery as TVL and Token Valuations Soar in 2023


In April 2022, decentralized finance (defi) protocols held a total value locked (TVL) of approximately $163 billion. However, by January 1, 2023, this amount had declined to $38.30 billion. The market capitalization of the leading defi tokens also experienced a significant decrease, dropping from $135 billion in April 2022 to $33.9 billion in January 2023. Despite these initial setbacks, both the TVL and the market valuation of defi tokens have seen a remarkable upward trajectory over the past year.

Defi's Growth in 2023

As the year 2023 comes to a close, the decentralized finance (defi) landscape has witnessed consistent growth. The total value locked (TVL) in defi now stands at approximately $53.30 billion, experiencing a significant increase from its low point of $33.9 billion.

This impressive ascent represents a growth of over 39%, adding $19.4 billion to the defi space. At the end of the year, prominent defi protocols leading in terms of TVL include Lido, Maker, Aave, Justlend, and Uniswap.

Lido's Dominance in Defi

Lido, a liquid staking defi protocol, holds a considerable share of the TVL in defi. It has amassed $20.82 billion, representing 39% of the combined TVL in the entire defi ecosystem. Ethereum continues to lead in the realm of defi, with 53.93% of the total value locked on its blockchain.

Tron follows with a significant 15.27%, while Binance Smart Chain (BSC) captures 5.97% of the total locked value across the sector. According to, the top defi coins by market capitalization currently boast a valuation of $78.03 billion.

Market Valuation of Defi Tokens

Over the past year, the top-tier defi token market has expanded by $44 billion. The leading defi tokens, ranked by market valuation, include STETH, LINK, DAI, UNI, and INJ, in that order.

At the end of last year in December, the dominant five defi tokens were STETH, DAI, UNI, LINK, and FRAX, respectively. DAI and FRAX are stablecoins, with DAI maintaining a relatively stable market cap at $5 billion and FRAX's circulation decreasing from $1 billion to the current $647 million.

STETH, which somewhat aligns with ETH's value, saw a price increase from $1,185 per coin on December 30, 2022, to around $2,268 per STETH currently. LINK, valued at $5.45 per coin last year, has risen to $15.54 per unit.

Meanwhile, INJ has experienced a significant increase from $1.29 per coin to $41.96, marking a 3,152% increase. The year 2023 has witnessed a notable recovery and cautious optimism in the defi landscape.

The Future of Defi

With the total value locked climbing to $53.30 billion and defi tokens appreciating significantly, the year has marked a turnaround from its subdued start. However, the future of defi remains open to diverse possibilities, reflecting the inherent dynamism and evolving nature of decentralized finance.

What are your thoughts on the improved state of defi in 2023? Share your opinions in the comments section below.

Frequently Asked Questions

Should You Buy or Sell Gold?

Gold was considered a safety net for investors during times of economic turmoil in the past. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.

The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.

Experts believe this could change soon. They believe gold prices could increase dramatically if there is another global financial crises.

They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.

Here are some things to consider if you're considering investing in gold.

  • Consider first whether you will need the money to save for retirement. It is possible to save enough money to retire without investing in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
  • Second, you need to be clear about what you are buying before you decide to buy gold. Each offers varying levels of flexibility and security.
  • Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.

So, if you're thinking about buying gold, make sure you do your research first. And if you already own gold, ensure you're doing everything possible to protect it.

What precious metal is best for investing?

The answer to this question depends on how much risk you are willing to take and what type of return you want. Gold is a traditional haven investment. However, it is not always the most profitable. If you are looking for quick profits, gold might not be the right investment. Silver is a better investment if you have patience and the time to do it.

Gold is the best investment if you aren't looking to get rich quick. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.

How much of your portfolio should you hold in precious metals

This question can only be answered if we first know what precious metals are. Precious elements are those elements which have a high price relative to other commodities. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.

But, there are other types of precious metals available, including platinum and silver. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is also not affected by inflation and depression.

The general trend is for precious metals to increase in price with the overall market. However, the prices of precious metals do not always move in sync with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.

The opposite effect happens when the economy is strong. Investors choose safe assets such Treasury Bonds over precious metals. These precious metals are rare and become more costly.

To maximize your profits when investing in precious metals, diversify across different precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.

What is the cost of gold IRA fees

Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance fees and investment costs for your chosen investments.

You may have to pay additional fees if you want to diversify your portfolio. These fees vary depending on what type of IRA you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.

A majority of providers also charge annual administration fees. These fees range between 0% and 1 percent. The average rate is.25% each year. These rates can be waived if the broker is TD Ameritrade.


  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (
  • (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (

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How To

Tips for Investing with Gold

One of the most sought-after investment strategies is investing in gold. This is due to the many benefits of investing in gold. There are several ways to invest in gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.

You should consider some things before you decide to purchase any type of gold.

  • First, check to see if your country permits you to possess gold. If you have permission to possess gold in your country, you can then proceed. You can also look at buying gold abroad.
  • You should also know the type of gold coin that you desire. You have options: you can choose from yellow gold, white or rose gold.
  • You should also consider the price of gold. It is better to start small, and then work your way up. It is important to diversify your portfolio whenever you purchase gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
  • Last but not least, remember that gold prices fluctuate frequently. Keep an eye on current trends.


By: Jamie Redman
Title: Defi Witnesses Dramatic Recovery as TVL and Token Valuations Soar in 2023
Sourced From:
Published Date: Tue, 26 Dec 2023 15:30:14 +0000

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