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Highlights From the DefiLlama 2022 DeFi Year in Review

The 2022 DeFi Year in Review Report from DefiLlama covers the history of the sector, the current status of protocols and team members' outlook for 2023.

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December 30, 2022

Past, Present, Future of DeFi

DefiLlama contributor Kofi has published a 2022 DeFi Year in Review that goes over the history of Decentralized Finance (DeFi), the current state of the market and the outlook on future trends.

Introducing: "2022 DefiLlama Year in Review 📊✨"

This report, written by Archwizard @0xKofi, covers every major trend of the past cycle from a data-driven perspective

- Catalysts that drove TVL
- Multichain narrative
- Emerging trends
And more! pic.twitter.com/YKW8KkhT93
— 0xngmi (aggregatoor arc) (@0xngmi) December 29, 2022

One section traces the early dominance of Ethereum and the rise of alternative blockchains like BNB Chain, the decline of others like Solana and, of course, the collapse of Terra.

According to the report, “it looks like the alt-L1 narrative has cooled off now that we’ve entered a bear market, and many of the narratives' big winners have seen their metrics crash from all-time highs. New alt-L1s that have attempted to capitalize on the same narrative, such as Aptos, have not experienced the same crazy run-ups that their predecessors saw.”

“Despite losing significant market share, Ethereum is still the market leader for DeFi by a high margin, and its L2s are rapidly climbing the rankings. It appears that the Ethereum ecosystem will remain the primary home of DeFi for the foreseeable future,” according to the report.

In the final section of the report, members of the DefiLlama team share trends they’re looking out for in 2023, including: