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- DeFi's Renaissance: Innovation Blooms After the Crypto Winter
DeFi's Renaissance: Innovation Blooms After the Crypto Winter
From crisis to creativity. This era is for scaling, competing, and innovating
TL;DR
After a tough crypto winter, DeFi is back with a bang, reaching $120 billion in total value locked (TVL).
While established projects remain strong, innovative staking, restaking, and L2 solutions are gaining traction.
DeFi's evolution continues with a focus on scalability (L2s), tokenization of real-world assets, and improved user experience.
Remember the crypto winter? DeFi took a hit, but guess what? It's blooming again! The total value locked (TVL) is back up to $120 billion (from a low of $30B), showing that DeFi is resilient and here to stay.
This period is characterized by increased institutional interest, improved user experiences, and potential regulatory clarity that could enhance the integration of DeFi with traditional financial systems.
Old Favorites & New Kids on the Block
Big names like Uniswap, Aave, and Maker (now Sky) are still leading the way, but some exciting new players are on the scene. Staking and restaking are really taking off, with projects like Lido, RocketPool, and EigenLayer making a splash. And we can't forget the Layer 2 (L2) scene: Arbitrum and Base are very busy, with lots of new projects like GMX and Aerodrome.
Chatting with central banks and banks. They all want @aave. To them it's like magical infrastructure they could only dream of
Dynamically adjusting rates based on supply and demand while also automating matching between lender and borrower? Practically impossible with current… x.com/i/web/status/1…
— Omar (@Ozhar)
12:31 AM • Dec 3, 2024
On the other hand, Ethereum isn't the only game in town anymore. Solana, with its speed and low transaction costs, is carving out its own niche. DEXs like Orca and Raydium are seeing increased volume, and projects like Jito are shaking things up. Plus, there are a bunch of other L1 blockchains emerging, each with its unique approach. Competition is fierce, which is great for innovation.
DeFi funnily enough
2021 happened because we built all the rails and standards for NFTs from 2018->2020
2025 defi renaissance is real since we spent 2020->now building the real defi rails. The rise of Morpho, Liquity V2, Fluid, Uniswap v4... the timing is epic.
— JOSΞPH 🍩 (@CupOJoseph)
2:50 PM • Dec 4, 2024
What's Next for DeFi in 2025?
L2s will be key for Ethereum's scalability, while Solana and other L1s will continue to battle it out. Tokenizing real-world assets is another big area to watch, and we can expect even more user-friendly wallets and easier cross-chain transactions. DeFi is constantly evolving, and it will be an exciting ride.
In just 47 days, Inauguration Day arrives on January 20, 2025, and the president-elect has his own #DeFi token that likely is launching on exchanges soon after.
Still, many of you are sleeping on #DeFi.
The #DeFi renaissance is upon us frens…prepare wisely.
2025 = Wild times.
— MSJ 𐤊🥞 (@MOONSHOTJOSH)
8:05 PM • Dec 4, 2024
Disclaimer: This content is for information and education purposes only and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.