Biggest DeFi Trends in 2022

While the decentralized finance (DeFi) space experienced an expansionary phase in 2021, total value locked (TVL) in DeFi contracted throughout 2022 from $166 billion to $42.1 billion, which corresponded to a 74.6% decline. Decentralized exchanges (DEXs) and lending platforms remained two of the most popular venues in DeFi by TVL.

The most drastic plunge in TVL was recorded in May when the entirety of the Terra ecosystem collapsed within days. Smaller scales of decline were also witnessed in June and November, seemingly driven by the fallout of Celsius Network and FTX, respectively.