Decentralized finance (DeFi) has been a big part of the explosive growth seen across the cryptocurrency ecosystem in 2022, with decentralized exchanges like Uniswap and SushiSwap and lending protocols similar Aave and Chemical compound calculation a new dimension of token utility.

Data from Messari's DeFi Assets index shows that over the past 30 days, a majority of the top 10 DeFi tokens gained more than 20%, with the top gainer, Terra (LUNA), seeing its cost increase more than 116%.

DeFi Assets alphabetize. Source: Messari

Three developments make the bullish example for DeFi tokens: a rapidly recovering total value locked, ascent trading volumes on decentralized exchanges and the not-end addition of new users into the DeFi ecosystem.

Total value locked makes its way dorsum toward an all-time high

Data from DeFi Llama shows that the total value locked (TVL) in DeFi platforms is inching closer to its previous $155 billion all-time high, and the figure currently stands at $140.56 billion.

Full value locked in DeFi. Source: DeFi Llama

Some of the biggest TVL gainers over the past 7 days include a 22% gain for Lido (LDO), an Ether (ETH) staking protocol that allows tokenholders to stake on the Ethereum network, and a 36% proceeds from Venus (XVS), a Binance Smart Chain-based lending protocol.

An increasing TVL is a reflection of rising token values and increased activity and deposits in the DeFi ecosystem. This boost in sentiment was likewise seen in the Crypto Fear and Greed Index, which flipped from Extreme Fear to Greed during the last month.

Crypto Fear and Greed Alphabetize. Source: Alternative

DEX volumes are on the rise

Another sign that the DeFi sector is waking upward is the rising daily trading volume on decentralized exchanges (DEX), led by Uniswap, whose volume has been steadily increasing since the last week in July, according to data from Dune Analytics.

Daily DEX volume. Source: Dune Analytics

The rising in DEX activity came despite the increasing cost of performing a transaction on the Ethereum network, a figure that has been rising since the implementation of the London hard fork.

Average Ethereum gas price. Source: Etherscan

During the contempo surly conditions, traders were more reluctant to pay the high transaction costs associated with DeFi on Ethereum, but the sudden uptrend in token prices appears to take emboldened users to brave the higher fee surroundings in the hopes of communicable the rise stars.

Related : DEXs could run into demand boost as regulators target centralized exchanges

A steady stream of new users engage with DeFi

A third indication that DeFi action and token values could continue to rise is the growing number of users inbound the DeFi infinite.

Data from Dune Analytics shows that the number of new users as calculated by unique addresses interacting with DeFi protocols has grown in bull and bear marketplace conditions and now sits at a record loftier of 3,181,408 users.

Total DeFi users over time. Source: Dune Analytics

As new users engage with the expansive DeFi ecosystem and migrate funds from the traditional financial organization into the crypto economy, token prices could go on to rise as attractive yields and the ability to participate in protocol governance increase investor involvement in the sector.

Ethereum's London hard fork did piddling to accost the concerns related to high transaction costs, which are further exacerbated by the rise price of Ether, and this means that the future of DeFi is nevertheless a new borderland where layer-two solutions like Polygon and competing networks like Binance Smart Chain and Cardano can wait to increment their market share.

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