The Smart Way to Talk About DeFi’s $22B

The Smart Way to Talk About DeFi’s $22B


Decentralized finance (DeFi), the sector of crypto that drove all the excitement this summer, isn’t quite back to its old energy, but the lull is over.

“Raw DeFi numbers are at all-time highs, and they’re not fake,” Alameda Research founder Sam Bankman-Fried told CoinDesk in an email. “But in relative terms to the rest of crypto, they’re down from their peak but up from their nadir.”

From a casual glance, it can look like DeFi is stronger than it’s ever been. Judged by the sector’s favorite metric, total value locked (TVL), the sector has been adding about a billion dollars worth of additional value per day since the new year started – from $15.67 billion to $22.35 billion as of this writing; however, a lot of that growth has been driven by the simple fact of asset prices going up across the board.

“TVL isn’t the best indicator when ETH and all other

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