The DeFi market sees growth as investors prefer safety over high yields, with 75% of funds in pools offering 0-5% APY.
Staking dominates DeFi, comprising 80% of TVL, while the lending sector enjoys a revival driven by traders seeking higher returns.
The decentralized finance (DeFi) market is experiencing a resurgence in confidence and liquidity as it transitions from uncertain to maturity and growth. According to insights from leading DeFi analytics firm Exponential, 75% of DeFi’s total value locked (TVL) is currently in pools offering conservative annual percentage yields (APY) ranging from 0-5%. This cautious approach, particularly evident in Ethereum staking pools, reflects a newfound emphasis on predictability and safety among investors.
Despite recent setbacks, the DeFi market is witnessing an upsurge in confidence and liquidity. After rising gradually from $26.5 billion in the third quarter of 2023 to $59.7 billion in the first quarter of 2024, the TVL in yield-generating DeFi
