DeFi Ecosystem Growth

Definition ∞ DeFi ecosystem growth refers to the expansion and maturation of decentralized finance applications and protocols built on blockchain technology. This includes increases in total value locked (TVL), the introduction of new financial products, and a rising number of active users. Growth signifies broader adoption and enhanced functionality within the permissionless financial landscape. It indicates increasing liquidity and utility across various decentralized services.
Context ∞ News reports frequently track DeFi ecosystem growth metrics, such as TVL milestones or the launch of innovative lending, borrowing, or trading platforms. This growth often drives discussions about the future of finance, regulatory challenges, and the potential for greater financial inclusion. However, it also brings scrutiny regarding security vulnerabilities and scalability limitations that must be addressed for sustained expansion.