The Decentralized Finance (DeFi) Sector Surpasses $100 Billion TVL Milestone
The decentralized finance (DeFi) sector has reached a significant milestone, with the total value locked (TVL) in DeFi protocols surpassing $100 billion. This surge in capital locked on-chain can be attributed to the renewed enthusiasm surrounding Bitcoin and the recent launch of spot Bitcoin exchange-traded funds (ETFs) in January.
According to DefiLlama, a prominent data provider for DeFi statistics, the global TVL in DeFi protocols has reached $100.1 billion, accompanied by a trading volume of over $10 billion in the past 24 hours at the time of writing. Although these figures are lower than the previous record of $189 billion set in November 2021, they still represent a significant achievement for the DeFi ecosystem.
Staking Platforms Lead Charts in Terms of TVL
Leading the charts in terms of locked value is the liquid staking protocol Lido, with an impressive $38.7 billion locked on-chain. Following closely behind are the staking ecosystem EigenLayer and the Aave protocol, with over $11 billion locked in each, respectively.
This growth in DeFi TVL beyond the $100 billion mark is a momentous occasion as it represents the first time in nearly two years that the sector has reached such heights. This growth can be attributed to the positive sentiment that has returned to the crypto markets since the launch of spot Bitcoin ETFs.
The institutional demand for Bitcoin ETFs has been instrumental in driving the price of the cryptocurrency to new all-time highs, surpassing $70,000 on March 8. A recent research from BitMEX reveals that assets in Bitcoin ETFs reached a staggering $28 billion on that day. Notably, this analysis excludes assets from Grayscale’s Bitcoin Trust, which underwent a conversion from an over-the-counter (OTC) product to an ETF in January.
OTC Trading Platforms Face Shortage of Bitcoin
Rumors have circulated on social media platforms about OTC trading platforms facing a shortage of Bitcoin and resorting to public exchanges to fulfill client orders. OTC desks typically cater to large-volume traders, including institutional investors.
Consequently, several centralized crypto exchanges, such as Binance, Coinbase, Kraken, and Bybit, experienced outages due to the surge in trading volume when Bitcoin surpassed $60,000. To manage the increased demand, Crypto.com CEO Kris Marszalek revealed that the exchange had hired 480 additional customer representatives.
The soaring price of Bitcoin has also triggered a surge in memecoin prices. Memecoins like Korra (KORRA) saw a staggering 577% rise in the last seven days, followed by Ribbit (RIBBIT) with a 235% surge and PUG AI (PUGAI) with a 232% jump. Notably, popular tokens such as Shiba Inu and Pepe recorded gains of 168% and 165%, respectively. As a result, the market capitalization of memecoins currently stands at $61 billion.
Furthermore, the memecoin trend has propelled Dogecoin and SHIB into the top 1 tokens by market capitalization, with $26 billion and $20 billion, respectively.
🔥 Hot Take: DeFi TVL Crosses $100 Billion Mark Due to Bitcoin Surge
The decentralized finance (DeFi) sector has achieved a major milestone with its total value locked (TVL) surpassing $100 billion. This surge in capital locked on-chain can be attributed to the renewed enthusiasm surrounding Bitcoin and the recent launch of spot Bitcoin exchange-traded funds (ETFs) in January. The TVL in DeFi protocols has reached $100.1 billion, accompanied by a trading volume of over $10 billion in the past 24 hours. Although this falls short of the previous record, it still represents a significant achievement for the DeFi ecosystem.
Leading the charts in terms of locked value is the liquid staking protocol Lido, with an impressive $38.7 billion locked on-chain. Following closely behind are EigenLayer and the Aave protocol, with over $11 billion locked in each, respectively. This growth in DeFi TVL beyond the $100 billion mark is a momentous occasion as it represents the first time in nearly two years that the sector has reached such heights.
Rumors have circulated about OTC trading platforms facing a shortage of Bitcoin and resorting to public exchanges to fulfill client orders. OTC desks typically cater to large-volume traders, including institutional investors. Consequently, several centralized crypto exchanges experienced outages due to the surge in trading volume when Bitcoin surpassed $60,000.
The soaring price of Bitcoin has also triggered a surge in memecoin prices, with Korra, Ribbit, and PUG AI experiencing significant increases. Memecoins like Shiba Inu and Pepe have also recorded substantial gains. As a result, the market capitalization of memecoins currently stands at $61 billion.
Overall, the combination of Bitcoin’s surge and the launch of spot Bitcoin ETFs has propelled the DeFi sector to new heights, crossing the $100 billion TVL milestone.
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