A Comprehensive Analysis of DeFi Performance Following BTC’s Surge to $35K
The past month has been a whirlwind of activity in the world of decentralized finance (DeFi), a period marked by significant change and growth. This exciting time coincided with Bitcoin (BTC) crossing the monumental $35K threshold, a milestone that sent ripples across the DeFi sector.
From October 19, 2023, to November 21, 2023, the Total Value Locked (TVL) in DeFi surged from $75.19 billion to a staggering $97.92 billion. This represents a phenomenal growth of approximately $23 billion, or a 30.2% increase, painting a picture of a vibrant and rapidly expanding sector.
But the story doesn’t end there. The following analysis provides us with a comprehensive understanding of recent trends and developments in the DeFi landscape and the impact of BTC’s price movement on this sector.
Overall DeFi TVL Analysis
The Total Value Locked (TVL) in DeFi is a critical measure of the sector’s health and growth. It represents the total amount of assets locked in DeFi protocols. Over the past month, from October 19, 2023, to November 21, 2023, the TVL in DeFi has seen a significant increase.

On October 19, the TVL was at $75.19 billion. By November 21, the TVL had risen to $97.916 billion. This represents a growth of approximately 23 billion (30.2%) over this period.
This substantial increase in TVL indicates a growing interest and investment in DeFi protocols. It suggests that despite the volatility and risks associated with the crypto market, investors are increasingly turning to DeFi as a viable investment avenue. This trend is likely to continue as more investors become aware of the potential returns and benefits offered by DeFi protocols.
Segment-wise TVL Analysis
In this section, we will break down the TVL across various segments of the DeFi sector. This will provide a more granular view of the performance of different types of DeFi protocols.
- LSD (Liquidity, Staking, and Governance)
Liquidity, Staking, and Governance (LSD) protocols form the backbone of the DeFi sector. They facilitate the creation of liquidity pools, enable staking, and allow for decentralized governance. Here’s how some of the top LSD protocols have performed:
- Lido, a liquid staking protocol, has a TVL of $18.242 billion, with a 1-month change of +12.83%.
- TON Locker, a staking pool, has a TVL of $3.122 billion, with a 1-month change of +7.73%.
- Binance Staked ETH liquid staking protocol has a TVL of $1.539 billion, marking a 10.82% increase.
- Spark stands out with a TVL of $1.536 billion, marking a significant increase of 73.77%.
- Lending Protocols
Lending protocols are a crucial part of the DeFi ecosystem, allowing users to lend and borrow assets in a decentralized manner. Let’s look at the performance of some major lending protocols:
- Frax Finance has a TVL of $1.17 billion, marking a growth of 13.39%.
- Venus has a TVL of $1.161 billion, marking a 17.21% increase.
- Radiant has a TVL of $796.23 million, marking a 15.66% increase.
- AAVE has a TVL of $9.043 billion, with a 1-month change of +4.87%.
- JustLend has a TVL of $6.095 billion, with a 1-month change of +13.82%.
- Decentralized Exchanges (DEXs)
Decentralized exchanges (DEXs) allow for peer-to-peer trading of assets without the need for an intermediary. Here’s how some popular DEXs have performed:
- Balancer has a TVL of $850.85 million, marking a 7.31% increase.
- Thorchain saw a massive 132% increase in TVL to $844.13 million.
- Sushi has a TVL of $527.9 million, marking an 11.99% increase.
- Uniswap has a TVL of $3.639 billion, with a 1-month change of +8.63%.
- PancakeSwap has a TVL of $2.015 billion, with a 1-month change of +23.55%.
- Derivatives Platforms
Derivative platforms in the DeFi sector allow users to trade financial contracts that derive their value from underlying assets. Here’s how some of these platforms have performed:
- GMX has a TVL of $884.16 million, with a 1-month change of +17.41%.
- dYdX has a TVL of $357.46 million, with a 1-month change of -2.18%.
- Yield Farming and Aggregators
Yield farming and aggregator protocols allow users to earn returns on their assets. Here’s how some of these protocols have performed:
- Convex Finance has a TVL of $1.87 billion, with a 1-month change of +17.75%.
- Yearn Finance has a TVL of $333.54 million, with a 1-month change of +4.04%.
- Pendle: Pendle has a TVL of $276.69 million, marking a 23.55% increase.
Protocols Ranking and Metrics
- Top Protocols by TVL
Between October 19 and November 21, 2023, significant shifts occurred among top protocols by Total Value Locked (TVL). Lido led in Liquid Staking with a $18.242 billion TVL, soaring by 12.83% in 30 days. AAVE, a major Lending platform, boasted $9.043 billion in TVL, growing by 4.87%. Maker, another Lending key player, held $8.257 billion with a modest 0.22% growth. JustLend impressed with $6.095 billion TVL, marking a 13.82% surge in the past month. Uniswap, a leading decentralized exchange (DEX), recorded $3.639 billion TVL, growing by 8.63% in the same period.
- Surge in Metrics
Several protocols have experienced a significant surge in Total Value Locked (TVL) and related metrics over the past month. Here are a few noteworthy examples:
- Spark: This protocol has seen a substantial increase in its TVL, with a growth rate of 73.77%. This surge could be attributed to various factors such as increased user adoption, favourable market conditions, and unique protocol features that attract investors.
- Thorchain: Thorchain has marked a massive increase of 132% in its TVL. This could be due to the protocol’s robust liquidity solutions that have attracted a significant number of users.
- Synthetix: Synthetix has experienced a substantial increase of 51.52% in its TVL. The surge could be linked to the growing interest in synthetic assets in the DeFi space.
- Marinade Finance: Marinade Finance has seen a significant increase of 96.64% in its TVL. The rapid growth could be a result of the protocol’s innovative staking solutions that have gained traction among users.
Trends and Market Sentiment Analysis
2023 has been the year where the decentralized finance (DeFi) sector experienced a remarkable surge in user adoption. This is evident in the substantial increase in the Total Value Locked (TVL) across various DeFi protocols. The rate of DeFi adoption has been on an upward trajectory, with countries like India, Nigeria, Vietnam, and Indonesia leading the charge in the 2023 DeFi adoption index. Interestingly, DeFi transactions account for more than half of the total crypto transaction volumes in some regions.
As for the market sentiment, the crypto community has demonstrated a largely positive outlook. As of the latest indicators, the Crypto Fear & Greed index, a tool that gauges the mood within the crypto community, stood at 69, indicating a state of ‘Greed’. This optimistic sentiment has likely played a significant role in fueling the growth in the DeFi sector.
Conclusion
In conclusion, the past month has been a period of significant growth and activity in the decentralized finance (DeFi) sector. This growth has been reflected in the substantial increase in Total Value Locked (TVL) across various DeFi protocols. The surge in Bitcoin’s price to $35K has had far-reaching implications for the DeFi sector, influencing trends and shifting the dynamics of various protocols.
The analysis also highlighted the impact of global economic factors on the DeFi sector. From monetary policies to inflation and geopolitical uncertainty, these factors have played a crucial role in shaping the performance of the DeFi sector.
Despite the challenges, the resilience and innovative spirit of the DeFi community continue to drive its growth and evolution. As we move forward, it will be interesting to see how these trends develop and shape the future of finance.