Decentralized Finance (DeFi) refers to financial services using smart contracts on blockchains, primarily Ethereum. TVL represents the total value of assets locked in DeFi protocols, serving as a key metric of the ecosystem's growth. The DeFi space has seen explosive growth, reaching a TVL of over $100 billion in 2021, driven by innovations in lending, borrowing, and yield farming.

Details:

• Historical Context: Rapid growth in TVL from under $1 billion in early 2020 to over $100 billion in 2021.

• Factors to Consider: Adoption rates, regulatory changes, technological advancements, and market sentiment.

• Data Sources: DeFi analytics platforms like DeFiLlama and DappRadar.