Investing Updates : DeFi lending TVL is outpacing DEXs due to more sustainable yield — VC

Source : 

https://cointelegraph.com/news/crypto-lending-tvl-outpacing-dexs-vc-explains?utm_source=feedly_feed&utm_medium=rss&utm_campaign=rss_partner_inbound

Apple Intelligence : 

• DeFi Lending TVL Growth: DeFi lending protocols have seen a surge in total value locked (TVL), surpassing $53.6 billion and representing 43% of all DeFi protocols.

• DEX TVL Decline: DEXs have experienced a significant drop in TVL, falling from $85.3 billion in November 2021 to $21.5 billion.

• Reason for the Shift: Investors may be seeking more sustainable yields, as DeFi lending offers a more reliable source of income compared to DEX liquidity pooling, which is often impacted by impermanent loss.

• DeFi Lending Dominance: DeFi-based crypto lending now accounts for 65% of the total market, surpassing centralized lenders.

• DeFi Lending Market Growth: DeFi open borrows surged by nearly 960% between Q4 2022 and Q4 2024, leading the resurgence in crypto lending activity.

• Reasons for DeFi Success: The strong recovery of DeFi lending is attributed to its design, risk management, and benefits of algorithmic, overcollateralized borrowing models.