DeFi trading volume nears 2021 highs

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Key facts: Solana and Near had notable growth, as did their cryptocurrencies. A similar trend has not been seen since the end of 2021. Decentralized finance (DeFi) protocols have seen skyrocketing growth in their trading volume in recent weeks. In fact, the flood is such that it reaches levels that resemble the maximums recorded in 2021, in a bull market situation like the one we are experiencing these days.

Daily volume in DeFi has consistently exceeded $10 billion, with a solid and sustained upward trend. This increase in trading volume is a clear indicator of the growing interest in these protocols, which allow financial operations to be carried out without an intermediary; Instead, transactions are regulated with smart contracts and codes that certify that the parties meet their obligations. Daily trading volume in DeFi has reached USD 10.95 billion, with a 7.85% increase in weekly volume, which reached USD 70.784 million. This steady growth trend resembles that seen in the 2021 bull market, thus suggesting strong momentum in the DeFi market. A network that stood out for its growth in this sector is Solana, which reached a total value locked (TVL) of USD 10,544 million and displaced Tron from that second step on the podium. The throne, of course, goes to Ethereum, which dominates 74% of DeFi operations.

For much of 2023, DeFi trading volume was below $5 billion. Source: defillama. Similarly, Near Protocol accumulates growth of more than 33% in terms of TVL in the week that passed. The cryptocurrencies of the two mentioned networks, SOL and NEAR, stand out even in a bearish weekend for the top 20 of the market, as reported in BitcoinDynamic. The increase in trading volume is also reflected in the growth in the share of decentralized exchanges (DEX) versus centralized exchanges (CEX). According to DefiLlama, DEXs currently account for 35% of total exchange volume, indicating a growing preference for decentralization among cryptocurrency traders. In addition to the increase in trading volume, the total value locked in DeFi remains around $100 billion. The figure indicates a growth of 112% compared to the same date in 2023when they accumulated USD 87.3 billion.