According to Odaily, the decentralized finance (DeFi) market is showing signs of recovery, as highlighted by Token Terminal in a recent article dated July 31, 2023. Key indicators such as active loans and total value locked (TVL) have been on the rise since their recent lows in 2023. Active loans have surged to approximately $13.3 billion, a level not seen since early 2022, suggesting an increase in leverage, which is often considered a leading indicator of a bull market.

DeFi TVL experienced a significant decline in 2023, plummeting 80% from its peak of $180 billion in November 2021 to around $37 billion by October 2023. However, this metric has since rebounded by approximately 160%, with the current TVL standing at about $96.5 billion. Notably, the first half of 2024 saw DeFi TVL double, rising from around $54 billion to a peak of $109 billion in June.

Despite these positive trends, it is important to note that most DeFi-related tokens remain at bear market lows. According to CoinGecko, the market capitalization share of these crypto assets is only 3.4%.