DeFiNews
DeFi TVL is climbing again — this time the composition looks healthier
Total value locked is back near cycle highs, but concentration risk and mercenary yield have both fallen.
Beyond the number
The total value locked number is easy to fetishise. The real story is that the average protocol is retaining users longer, yields are less dependent on token emissions, and the top ten protocols represent a smaller share of the total than at the last peak.
Categories doing well
- Restaking and liquid staking primitives
- On-chain money markets with conservative risk parameters
- Real-world-asset protocols anchored to short-duration treasuries
Categories still struggling
Novel derivatives designs and highly-leveraged yield loops have not led this recovery. That is arguably a feature, not a bug.
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