DeFi TVL Rebounds to $170B, Erasing Terra-Era Bear Market Losses

The total amount of capital locked on decentralized finance (DeFi) protocols hit $170 billion on Thursday, a landmark figure as now all of the the losses from the 2022 Terra/LUNA ecosystem collapse and subsequent bear market have been erased. While Ethereum still commands the lion's share of capital at 59%, newcomers including Coinbase-backed layer 2 network Base, HyperLiquid's layer 1 blockchain and Sui have begun to chip away at Ethereum's dominance, collectively amassing more than $10 billion worth of total value locked (TVL), representing around 6%. DeFi TVL by chain (DefiLlama) [https://cdn.sanity.io/images/s3y3vcno/production/7df0b3060154b4fd570e8fc8329b9715c50e0920-2398x858.png?auto=format] Investor trends have shifted in this recent cycle; institutional adoption of ether has led to outflows from traditional liquid staking products like Lido into institutional staking products like Figment, while there has also been growth in Solana and BNB Chain due to a seismic rise in memecoin activity. Solana is now the second largest blockchain in terms of DeFi with $14.4 billion in TVL with BNB chain behind that with $8.2 billion. A MATURING SECTOR The previous bull market between January 2021 and April 2022 saw rapid growth…