Crypto intelligence platform DappRadar says the total value locked (TVL) in the decentralized financ
Crypto intelligence platform DappRadar says the total value locked (TVL) in the decentralized finance (DeFi) sector surged to a level not seen in over a year.
DappRadar notes in a new analysis that total DeFi TVL increased by 7% in January and reached $110 billion, the highest since 2022.
TVL refers to the amount of capital deposited within a protocols smart contracts and is often used to gauge the health of a crypto ecosystem.
DappRadar radar says the jump in overall TVL indicates a “resurgence in the market.”
“This surge in DeFis TVL is partly attributed to growing optimism about the onset of a new bull market, which has sparked an uptick in overall token prices. A continuing trend from 2023, which persists into 2024, is the launch of new chains offering airdrops, fueling the narrative around airdrop hunting in the X ecosystem. This phenomenon contributes significantly to the heightened activity in the DeFi landscape.”
Despite the sectors overall increase, only three of the top ten chains witnessed jumps in TVL in January: the smart control protocol Ethereum (ETH), the Ethereum competitor Solana (SOL) and the scaling solution Arbitrum (ARB).
In January, Ethereum‘s TVL jumped by 6.2%, Solana’s rose by 5.19% and Arbitrums increased by 2.24%. Of the top 10 chains, the decentralized liquidity protocol THORChain (RUNE) witnessed the largest TVL slump, decreasing by more than 20%.
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