Recent data from the DeFi tracking service Llama shows that the total value locked (TVL) in decentralized finance (DeFi) protocols has recovered to the $54 billion mark.

According to the data, the total TVL is down, between $53.7 and $53.29 billion, from October 12. In September, TVL dipped to $52.22 billion, the lowest since March 2022.

Source: DefiLlama

According to the data, the largest DeFi lending platform across all chains remains Ethereum-based MakerDAO with a 14.48% market dominance and $7.83B TVL. Lido is the second most dominant DeFi lender with a market cap of $6.11 billion, while Curve Finance is third at $5.92 billion, Aave is fourth at $5.19 billion, and Uniswap it is fifth with $4.97 billion.

As can be seen from the data, the value locked in Ethereum remains the largest, at around $31.2 billion, or just over 57% of the aggregate value locked today. Ethereum is followed by $5.54 billion from Tron, $5.33 billion from Binance Smart Chain (BSC), and $1.41 billion from Avalanche, among other DeFi protocols.

In simple terms, TVL measures the total value of all assets locked in DeFi protocols. TVL includes all tokens deposited across all features offered by DeFi protocols, including reserves, loans, and liquidity pools. In other words, the TVL is a measure of funds deposited in smart contracts, and analysts are closely following this figure as an indicator of investor confidence in the market.

Over the past two years, the cryptocurrency sector saw a dramatic increase in Total Value Locked (TVL) across all DeFi platforms due to the boom associated with the bull market that attracted massive capital during that time. But all that changed in 2022.

As of March this year, value locked in DeFi traded above the $200 billion mark. But things started to take a turn for the worse in May amid a sell-off in global markets and less interest in risky assets such as cryptocurrencies. The total value locked in the crypto market decreased from $160 billion in mid-April 2022 to $52.2 billion in September 2022, the lowest level since March 2022.

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