Defi Witnesses Dramatic Recovery as TVL and Token Valuations Soar in 2023



In April 2022, decentralized finance (defi) protocols held approximately $163 billion total value locked (TVL). However, by January 2023, this amount had declined to $38.30 billion. Despite this initial setback, both TVL and the market valuation of the leading defi tokens have shown significant growth over the past year.

Growth in TVL

As 2023 draws to a close, the total value locked (TVL) in defi stands at approximately $53.30 billion, indicating a remarkable increase of over 39%. This surge has added $19.4 billion to the defi space. Notable defi protocols leading in TVL size include Lido, Maker, Aave, Justlend, and Uniswap.


Lido Leading in TVL

Lido, a liquid staking defi protocol, holds a significant share of the TVL in the defi ecosystem, amassing $20.82 billion, which represents 39% of the combined TVL. Ethereum continues to dominate the defi space, with 53.93% of the total value locked on its blockchain. Tron and Binance Smart Chain (BSC) follow with 15.27% and 5.97% respectively.

Growth in Defi Tokens

The defi token market has seen substantial growth over the past year. The market capitalization of the top defi coins currently stands at $78.03 billion, marking an expansion of $44 billion. The leading defi tokens by market valuation include STETH, LINK, DAI, UNI, and INJ.

Changes in Defi Token Rankings

At the close of last year, the dominant five defi tokens were STETH, DAI, UNI, LINK, and FRAX. DAI and FRAX are stablecoins, with DAI maintaining a relatively stable market cap at $5 billion and FRAX's circulation decreasing from $1 billion to $647 million. STETH has increased in value from $1,185 to $2,268 per coin, while LINK has risen from $5.45 to $15.54 per unit. INJ has experienced a significant increase from $1.29 to $41.96 per coin, marking a 3,152% increase.


As 2023 concludes, the defi landscape showcases a narrative of recovery and cautious optimism. With the total value locked reaching $53.30 billion and defi tokens appreciating significantly, the year has marked a notable turnaround from its subdued start. The future of defi remains open to diverse possibilities, reflecting the inherent dynamism and evolving nature of decentralized finance.

What are your thoughts on the state of defi improving in 2023? Share your opinions in the comments section below.

Frequently Asked Questions

Are precious metal IRAs a wise investment?

The answer depends on how much you are willing to risk an IRA account losing value. If you have $10,000 cash, they make sense as long as you don’t expect your IRA account to grow rapidly. These are not the best investments if there is a long-term plan for saving money (like gold) or if you want to invest more in assets that will rise in value over time. They can also come with fees that could cut into any gains.

What is the best way to make money with a gold IRA?

Yes, but it's not as simple as you think. It depends on what level of risk you are willing take. It's possible to retire with $1 million if your retirement age is reached if you are able to put aside $10,000 per year for 20 consecutive years. If you try to put all your eggs into one basket, you will lose everything.

You need to diversify your investments. Inflation is a problem for gold. You should invest in an asset that increases with inflation. Stocks excel at this because they rise with increased profits. This is also true of bonds. They pay interest each and every year. They are great in times of economic growth.

But what happens if there's no inflation? Stocks fall more and bonds lose value during deflationary times. Investors should avoid investing all of their savings into one investment like a stock mutual funds or bond.

They should instead invest in a combination of different types of funds. They could, for example, invest in stocks and bonds. Or, they could invest in both bonds and cash.

By doing so, they are exposed to both the positive and negative sides of the coin. They can see both the inflation and the deflation sides of the coin. They will see a return over time.

What Should Your IRA Include in Precious Metals?

Protecting yourself from inflation is best done by investing in precious metals such silver and gold. It's not just for retirement. It can also be used to prepare for economic downturns.


While silver and gold have seen significant increases in the last few years, they are still safe investments since they don’t fluctuate as often as stocks. These materials are also in high demand.

Predictable and stable prices for gold and silver are common. They tend to rise during economic growth and drop during recessions. This makes them great money-savers and long-term investments.

Precious metals should make up 10 percent of your portfolio. That percentage could go higher if you want to diversify your portfolio further.


  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • Silver must be 99.9% pure • (
  • To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (
  • You can only purchase gold bars of at least 99.5% purity. (

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How To

How to turn your IRA into a IRA with gold content

Are you looking to transfer your retirement savings out of a traditional IRA in favor of a gold IRA. This article will guide you through the process. This is how you can make the switch.

“Rolling over” is the act of transferring money from one type (traditional) to another type (gold). Rolling an account over offers tax advantages. Others prefer to invest in tangible assets, such as precious metals.

There are two types IRAs – Traditional IRAs (or Roth IRAs). The difference is simple. Traditional IRAs allow investors the ability to deduct taxes whenever they withdraw their earnings. Roth IRAs are not. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. If you invested the same amount in a Roth IRA, however, you'd be able to keep every penny.

If you are looking to convert your traditional IRA into a gold IRA, here's what to know.

First, you need to decide whether to roll over your current balance into a new account or simply transfer funds from your old account to your new one. If you transfer money, income tax will apply to any earnings exceeding $10,000. However, if your IRA is rolled over, these earnings will not be subjected to income tax until age 59 1/2.

After you have made your decision, you will need to open a new account. Most likely, you will need to present proof of identity such as a Social Security Card, passport, or birth certificate. You will then need to fill out paperwork proving that you have an IRA. Once you've completed the forms, you'll submit them to your bank. They'll verify your identity and give instructions on where to send the checks and wire transfers.

Now comes the fun part. The fun part is when you deposit cash into the account, and then wait for the IRS approval. After approval is granted, you will receive a letter saying that you are now allowed to withdraw funds.

That's it! You can now relax and watch your money grow. Remember that if you are unsure whether you want to convert your IRA, it is possible to close it and roll the balance over into a new IRA.


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