Decentralized Finance (DeFi) gained its popularity in 2021, during the last bull market cycle. At that time, everybody in the crypto space started to learn how to lend or borrow stablecoins to one another through DeFi protocols. And despite nowadays the hype has died down and the bears took over the market trend, DeFi is still pretty much alive and well.
At the time of this article’s writing, the Total Value Locked (TVL) in DeFi protocols is still above $50 billion (source: DeFiLlama)
. While this TVL number is way lower compared to the peak of the last bull market around November 2021, it still is a huge number.
In fact, there is no better time to start learning “how DeFi lending works” than during the middle of the bear market like today. Imagine if you keep earning interest on your crypto lending activities, you will reap the most benefits compared to those who will only dive deep into DeFi lending protocols during the next bull market cycle.