DeFi's total value fell 66%, although other metrics show increase.

Finance decentralized TVL is down 66%, but DEX aggregators, active addresses, and constant fund raises prove "DeFi winter" isn't here.

The aggregate total value locked (TVL) in the crypto market represents cash put in smart contracts. This figure fell from $160 billion in mid-April to $70 billion, the lowest level since March 2021. While this 66% reduction is worrisome, research suggests the DeFi sector is resilient.

TVL as a broad statistic lacks detail. The metric doesn't include DeFi transactions, layer-2 scaling solutions, or VC inflows.

In DappRadar's July 29 Crypto adoption report, DeFi 2Q transaction count dropped 15% from the previous quarter. This result is significantly less worrying than the TVL fall, which was accompanied by a 12% loss in unique active wallets.

Layer-2 is key to DeFi development.

Midas Investments' Iakov Levin told Cointelegraph:

"I'm sure the current bear market isn't the 'end' of DeFi. Velodrome reached more over $130 million in TVL on layer-2 Ethereum scaling platform Optimism."
Optimism is an Ethereum scalability solution that bundles transaction verifications off-chain, decreasing processing and transaction costs.

VC inflows enhance DeFi's resilience. Multicoin Capital raised $430 million on July 12. The 2017-founded corporation focuses on Web3 infrastructure, DeFi applications, and autonomous business models.

Variant raised $450 million to fund "financial emancipation through DeFi" The strategy includes financializing NFTs, stablecoins, loan optimizers, DEX aggregators, and "bridging the legacy financial system with DeFi"

Levin believes that scaling solutions will take decentralized finance applications to the next level in the 3Q of 2021. The average Ethereum network transaction price was over $25, making it hard for apps to acquire popularity. Midas CEO Levin:

"Layer-2 might revive the sector's growth, I think. Optimistic and zk-Rollups methods will increase scalability. Layer-2 will enroll a new wave of users by offering reduced transaction fees and near-instant semi-confirmations."
1inch Network and Metamask Swap are notable.
DappRadar data shows a constant number of active DeFi addresses over the previous 30 days.

30-day active DeFi apps. DappRadar data showed a 2% decline in active addresses, although four of the top five apps grew. DEX aggregators 1inch Network and MetaMask gained users, dispelling fears of a "DeFi winter."

Decentralized finance continues to increase in active addresses, venture capital investments, and novel solutions delivering cheaper and faster processing compared to late 2021.