The decentralized finance (DeFi) sector is mounting a comeback in May, following a sluggish start to the year.
Data from DeFiLlama shows total value locked (TVL) across DeFi protocols has climbed to $121.47 billion, marking a 43% increase from Aprilโs lows of $84.9 billion.
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Several emerging segments, including Bitcoin restaking, real-world asset lending, and infrastructure protocols, have been key drivers of the DeFi rebound, fueled by a broader market recovery, renewed investor confidence, and fresh capital flowing into decentralized platforms.
Platform upgrades and the rollout of new features have also contributed, attracting users and liquidity back to the ecosystem. As user participation grows, so too do protocol activity and trading volumes.
With TVL serving as a key barometer of DeFi health, measuring capital locked into lending, staking, and liquidity, here are the top five projects that posted the largest gains this month.
Bitcoin Restaking Leads the Charge
The Restaked BTC category posted the highest TVL growth this month, jumping 173% as interest in Bitcoin-native DeFi intensifies.
Coffer Network, a standout in this space, saw its TVL rise 69.5% to $317.7 million. The broader ecosystem of Bitcoin-based DeFi protocols has now reached a combined $3.3 billion in TVL, reflecting a growing appetite for BTC yield-generating platforms.
RWA Lending Gains Ground
Real-world asset (RWA) lending protocols are also gaining traction, with TVL in the category up 106% this May.
Vivacity Finance emerged as a key player, offering users the ability to borrow NOTE tokens backed by tokenized real-world assets. Its TVL rose 13% to $68.55Kโmodest in dollar terms, but significant in a niche, rapidly expanding category.
Collateralized Debt Tools Get a Boost
TVL in the Collateralized Debt Positions (CDPs) category grew by 78%, driven largely by new protocol launches and token incentives.
Summer.fi Pro, an AI-powered yield optimizer, more than doubled its TVL in May after rolling out its Lazy Summer Protocol and SUMR token. Deposits surged to $253.84 million, representing a 125% increase in one month.
Developer Infrastructure Attracts Fresh Capital
The Developer Tools category, often overlooked in TVL discussions, saw a 74.6% rise.
Intuition, an Ethereum-based attestation protocol, led this growth.
TVL jumped 77.5% to nearly $120,000 following the projectโs $4 million funding round.
DEX Innovation on the Flare Chain
Within the DEX category, SparkDEX was a clear standout. A major protocol on the Flare chain, SparkDEX saw its TVL surge 348% in May to $57 million, driven by the integration of the cross-chain stablecoin USDT0.
Since the upgrade, SparkDEXโs TVL skyrocketed by over 500%, bringing in more than $15 million weekly. Monthly trading volume exceeded $300 million, while the user base grew by 2,000, signaling renewed interest in next-gen DEX platforms.
Why This Matters
DeFiโs sharp rebound points to growing investor confidence and a renewed appetite for risk in the crypto market. With fresh capital, new use cases, and more efficient protocols gaining traction, this momentum could mark the start of the next phase in decentralized finance growth.
