Crypto Moves #40 – Another ‘DeFi Summer’ Is On the Horizon
The summer of 2020 marked a pivotal moment for decentralized finance (DeFi), as it gained significant momentum, reflected by the surge in Total Value Locked (TVL) across DeFi protocols.
Chart 1: Total Value Locked (TVL) in 2019 and 2020
While DeFi continued to grow through 2021, it was the rapid expansion during the summer of 2020 that left a lasting impression on the community, earning the period the moniker ‘DeFi Summer.’
Chart 2: Total Value Locked (TVL), All Time
Although the actual season may be shifting towards winter, ‘DeFi Summer’ is making a comeback, but the Total Value Locked is still quite far from its 2021 peak. However, it is likely only a matter of time before we surpass that all-time high – potentially as soon as the first half of 2025.
In this edition of Crypto Moves, we outline the specific reasons why we believe we are on the cusp of a new ‘DeFi Summer.’
The 2020 ‘DeFi Summer’ was four years ago. Now it seems more likely than ever that another DeFi summer is on the horizon, with several factors pointing in that direction.
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