As the overall crypto market rebounds and investor opinion improves, inflows into the DeFi sector have increased.

Decentralized financing (DeFi) has had a tough year so far in 2022, with the top ten-ranked DeFi assets down between 10% and 50% since the start of the year, according to Messari statistics.

A bright spot is that after a month of falls, money has begun to flow back into the DeFi ecosystem, with statistics showing institutional and retail funds returning to crypto markets. Defi Llama’s total value locked on all DeFi platforms reached $211.1 billion on February 11, up from $185.14 billion on January 31.

When looking at the various protocols that make up the total TVL, it’s clear that stablecoin-focused protocols like Curve (CRV) and Convex Finance (CVX) have suffered the most from the implosion of prominent rebase projects like OlympusDAO (OHM) and Wonderland (TIME). Yearn.Finance witnessed a 28.57 percent drop in TVL, while Abracadabra.money saw a 46.3 percent drop in TVL due to the controversies surrounding its development team. On the other hand, every crisis gives an opportunity, and in this case, the stablecoin shakeup has helped the decentralized stablecoin protocol Frax (FXS). Over the past 30-days, the protocol’s TVL has grown by 35.81 percent.

Continued Rise in DEX activity

Apart from the total value locked statistic, which has its own set of benefits and drawbacks, activity across DeFi apps continues to rise year over year, with the volume traded on decentralized exchanges (DEX) during the previous three months ranking among the largest ever recorded. Uniswap (UNI) continues to be the most popular DEX, accounting for 77.9% of all volume traded, followed by Curve (7.8%) and SushiSwap (5.6%). (SUSHI). Uniswap, dYdX, and the SpookySwap were the top three protocols (gross merchandise value (GMV) during the last three days, according to TokenTerminal statistics. GMV is a metric that reflects the overall amount of sales over a period of time.

DeFi users on a sustained rise

The overall number of DeFi users, which has constantly increased according to statistics from Dune Analytics, is a final measure indicating the sustained use of decentralized finance. On February 10, 4,363,238 unique addresses connected with a DeFi application, up from 1,369,368 wallets registered on February 10, 2021, a year-over-year growth of more than 300 percent.

A detailed examination of which applications have the most users reveals that Uniswap, with 3,608,951 unique wallets communicating with the DEX protocol, leads the field again, followed by 1Inch with 1,108,570. The total cryptocurrency market capitalization is currently $1.996 trillion, with Bitcoin commanding 41.9 percent of the market.