Net deposits on the decentralized finance (DeFi) platform Aave hit $33.4 billion — marking a new all-time high for the lending protocol and surpassing levels seen during the 2021 bull market.

The protocol also expanded its presence in 2024 by adding the BNB Chain, Scroll, ZKsync Era, and ether.fi to its supported list of markets.

Aave may also add several new markets in 2025, including Sonic network, Mantle, Ethereum layer-2 scaling solution Linea, Bitcoin layer-2 solution BOB, Spider Chain, and the Aptos layer-1 network, pending community approval.

DeFi experienced a surge in total value locked and activity following Donald Trump's electoral victory on Nov. 5 due to expectations of a friendlier regulatory environment and pro-crypto policies.

Digital asset sectors market cap growth in 2024. Source: The TIE Terminal

Decentralized finance experiences renaissance

DeFi tokens rallied by up to 30% immediately following the results of the US elections.

Investors and industry executives speculate that DeFi projects will now be able to explore revenue sharing via fees that accrue to their respective DeFi tokens if comprehensive crypto legislation is passed.

Charlie Sherry, head of finance and cryptocurrency analyst at BTC Markets, told Cointelegraph that DeFi projects and firms avoided adding value accrual mechanisms due to fear of litigation from the Securities and Exchange Commission (SEC).

The total value locked (TVL) across the DeFi sector surged by 150% in 2024. According to data from DefiLlama, the total value currently locked in DeFi is approximately $130 billion.

The total value locked across the DeFi sector. Source: DeFiLlama

Growth in the sector was underpinned by the rise in liquid restaking protocols such as EigenLayer and a proliferation in Bitcoin (BTC) DeFi products like wrappers and Bitcoin layer-2 networks.

DeFi hacks also dropped by 40% in 2024 — a welcome sign for a sector normally plagued by hacks and cybersecurity exploits.

According to blockchain security firm Hacken, protocol updates, stronger cryptography, and more robust bridges bolstered the security of decentralized finance platforms compared to 2023.

In contrast, monetary losses from hacks and breaches of centralized exchanges nearly doubled during the same period, with losses crossing $694 million for the year.

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