DeFi history lesson: TVL drop
DeFi's total value locked (TVL) plummeted 78% from $180B to $40B in 2022, but Aave, Uniswap, Compound, and MakerDAO emerged as core protocols [https://x.com/Ducatstable/status/2031807452757524912]. Are these 'core' protocols still the dominant players in DeFi today?
While DeFi TVL dropped dramatically in 2022, it began a strong recovery in 2023 and 2024. By December 2024, DeFi TVL had surged 150% since the start of the year, reaching over $133 billion, nearing 2021 highs. This resurgence was fueled by the crypto bull run, the rise of liquid restaking tokens, and advancements in Layer 2 solutions. Ethereum remains the dominant DeFi hub, accounting for approximately 63% of the total TVL, although its share is decreasing. Solana has emerged as a strong competitor, increasing its market share to 10% due to low transaction costs and innovative DeFi protocols. Aave and MakerDAO saw significant revenue growth in 2024, with Aave's revenue approaching its historical highs and MakerDAO exceeding them. Aave has maintained its leading position in the DeFi lending market, commanding a significant market share and attracting substantial institutional capital. In 2025, Aave held $19 billion in total value locked, representing a 67% share of the DeFi lending market, significantly outpacing competitors like Compound and Maker. Aave generated between $86.2 and $105 million in revenue throughout 2025, demonstrating consistent revenue expansion.
