The decentralized finance (DeFi) sector in 2024 achieved a remarkable success with Total Value Locked (TVL) growing by an astounding 211%. According to a recent report by DappRadar, this increase accrued to a total of $214 billion by the end of the year.
This growth brings DeFi to just $47 billion shy of its December 2021 peak, marking one of its most remarkable performances to date.
Layer one chain Solana achieved a jaw-dropping 2,000% increase in its TVL, rising to become the second-largest blockchain by TVL, behind Ethereum. This attention grabbing growth came after a difficult 2023
In 2024, Solana rebounded strongly, thanks to a combination of technological advancements, increased adoption, and a surge in decentralized finance and memeoins activity. The rise of memecoins such as PEPE, GOAT, and ShibaDoge brought fresh liquidity and a wave of new traders to DeFi platforms, with Solana-based projects benefiting greatly.
These speculative tokens acted as gateways for new users entering the DeFi space, and their trading activity created a surge in volume.
In addition, the introduction of AI-driven agents transformed the DeFi ecosystem in 2024. These AI agents helped streamline complex processes like yield farming, arbitrage, and governance to make it easier for users to participate in DeFi and optimize their returns. This innovation not only improved efficiency but also attracted more users to Solana and other DeFi platforms.
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Another significant factor that increased DeFi TVL was the rise of Bitcoin in 2024. Bitcoin hit a record high of $108,000 in mid-December. Thanks to the approval of several Bitcoin ETFs.
This spike in Bitcoin’s value reignited interest in the broader crypto market, which in turn benefited DeFi platforms like Solana. As more investors flocked to DeFi in search of better returns, Solana saw an influx of new liquidity.
The year also saw the rise of Layer 2 solutions like Optimism, zkSync, and Arbitrum, which gained popularity for their ability to scale blockchain transactions and reduce costs. These technological advancements, combined with Solana’s growing adoption, helped create a more efficient and accessible DeFi ecosystem. As users flocked to these platforms, the overall TVL across the industry soared.
According to DappRadar, the DeFi sector in 2025 is expected to continue its growth trajectory, with even more innovations coming.
