DeFi adoption varies across chains, BTC price affects velocity

Amid the 2023 bear market, one can’t help but reflect on the game-changing moments that have shaped this industry.

The ‘DeFi Summer’ of 2020 was a turning point in the blockchain industry, as CryptoSlate remembers. This season saw the debut of several DeFi projects, signaling the dawn of a new era in finance. DeFi’s evolution during this period didn’t just make waves; it catalyzed a paradigm shift, positioning itself as the bold trailblazer of this unprecedented movement.

Having been around in concept since 2015 through projects such as MakerDAO, DeFi experienced a monumental surge during the bull run of 2021, redefining traditional finance and making its mark as a significant player in the market. Yet, today, with token prices down up to 90% as we navigate the murky waters of the current bear market, we look at the velocity of DeFi adoption and the impact of market cycles on adoption.

DeFi TVL analysis by chain since 2017

Against this backdrop, our analysis focuses on data collected from 2018 to 2023, with an emphasis on adoption across chains such as Ethereum, Tron, BNB Chain (BSC), Arbitrum, Polygon, Optimism, Avalanche, Mixin, Pulse, Cronos, Solana, Cardano, and Osmosis.

The table below shows the chains analyzed, the date the chain reached its all-time high for TVL (as tracked by DefiLlama,), the time it took to get its all-time high since launch (velocity), its all-time high (ATH), and the current TVL.