Crypto users could be looking for a more sustainable yield this cycle, as total value locked in decentralized finance (DeFi) lending continues to hit new highs while decentralized exchanges (DEXs) have lagged in comparison.
DeFi lending protocols are currently the leading DeFi vertical in TVL at $53.6 billion, representing 43% of the $124.6 billion locked across all DeFi protocols. The figure also surpasses liquid staking.
Multichain lending protocol Aave currently holds $25 billion of locked value, accounting for nearly half of the DeFi lending market.
Change in crypto lending protocol TVL since 2019. Source: DeFiLlama
In stark contrast, DEXs, which once held nearly double the TVL of their closest competitor, have dropped from $85.3 billion in November 2021 to $21.5 billion today.
Explaining the rise in DeFi lending and fall in DEX TVL, the founder of crypto fund Apollo Capital,