Active loan amounts have rebounded to their highest level since early 2022, which may indicate that DeFi is recovering again

Crypto market analysis platform Token Terminal said in a July 31 article that "DeFi is recovering again," with data showing that key indicators such as active loan amount and TVL have been rising since the recent lows in 2023, with active loan amount returning to its highest point since early 2022 at about $13.3 billion, which could mean that leverage is increasing, a "leading indicator of a bull market." DeFi TVL also took a huge hit in 2023, falling 80% from a peak of $180 billion in November 2021 to around $37 billion in October 2023. But since then, the indicator has recovered about 160%, with TVL currently around $96.5 billion. In addition, DeFi TVL doubled in the first half of 2024, from around $54 billion to a peak of $109 billion in June. However, it should be noted that according to data from CoinGecko, most DeFi-related tokens are still deep in the bear market lows. The market capitalization share of this type of crypto assets is only 3.4%. (Cointelegraph)