As the 2024 bull market expands, inflows reach new records. Stable Ethereum (ETH) prices and new Bitcoin (BTC) price records are already reflected in DeFi.
Bitcoin and Ethereum gain more value as their values rise at the end of the year. The bull market effect led to an overall recovery in DeFi last month. Funds flow into ETH-based BTC and DeFi staking protocols.
The inflow was even more pronounced in liquidity redistribution, one of the growth sectors for the full year. Additionally, the rise in popularity of Hyperliquid has made it the largest hub by value after BTC and ETH.
Based on the change in the total locked value, Hyperliquid accelerated the influx of funds. The value locked in BTC and ETH rises as prices rise, and the value of the collateral increases as well.
Fund inflows into these leading projects range from user deposits to DeFi and ETF purchases. Fund inflows may vary for different ecosystems, but the overall trend remains positive. The largest outflow of funds is from TRON, while smaller inflows continue for the most active L1 and L2 chains with mature DeFi and Web3 applications.
Last week the BTC rate increased after Cap-3 event from Babylon Labs. The event will end on December 16th following the drawing of new non-custodial bets for 1,000 blocks. The event raised an additional 59,983 BTC, worth $5.38 billion. These inflows will be counted in the coming weeks, reflecting the vertical expansion of TVL for the Bitcoin network. The total value of locked BTC is now $6.92 billionat a price of over $104,000 per coin. Most of the value is locked up in Babylon Labs, which has total liquidity of $5.63 billion.
Hyperliquid increases TVL with new trade offers
Hyperliquid is in the process of developing its decentralized futures trading platform. DEX adds new trading options, starting with low leverage.
Hyperliquid is also constantly expanding its open interest, attracting an influx of stablecoins. The exchange does not operate on spot markets, but only offers derivative pairs.
Hyperliquid hits new all-time high in open interest of >$4.3 billion pic.twitter.com/8YUwBEEWEU
— Hyperliquid (@HyperliquidX) December 16, 2024
According to other indicators, Hyperliquid is recorded US$3.19 billion with vertical growth since its launch in December. The growing popularity of the HYPE token and high-speed trading capabilities strengthen Hyperliquid’s position as one of the actively growing protocols.
As a result of the growth, the native HYPE token began to expand. HYPE is trading at $26.50, with no drawdowns since token generation. Owners of HYPE are also not selling, unlike the first recipients of Magic Eden (ME).
Ethereum Liquid Staking and Restaking Accelerates DeFi
Another source of liquidity and locked ETH are DeFi applications with the necessary collateral. There is currently $70.69 billion in total liquid bets, resulting in $7.68 million in daily commissions. LidoDAO is still the leader with over $39 billion in value locked.
Another major source of inflows are liquidity redistribution protocols, which create another layer of liquidity. During 2024, liquid asset re-staking increased by over 6,000%, with total value locked exceeding $17 billion.
The leader is EtherFi with over $9.37 billion, followed by KelpDAO. The sector started with just $284 million in January. Overall, the DeFi sector is now recording over $140 billion, a level not seen since April 2022. The value of DeFi has fallen since 2022 while protocols have had to be rebuilt and liquidity has flowed into new applications.
One growth app in 2022 was Aave (AAVE), which now has over $22 billion in various assets. The creation of $196.8 billion worth of stablecoins also increases available liquidity for pooling, staking and lending.
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