DeFi TVL Reaches Highest Level in 20 Months
Total value locked (TVL) in decentralized finance (DeFi) has surpassed $69 billion for the first time since June 2022, indicating a resurgence in DeFi activity across multiple blockchains. TVL on Ethereum has increased by 37% in the last month, reaching around $41 billion. The rise in TVL on Ethereum can be attributed to protocols like EigenLayer. The price of ETH has also surged, with a target of $3,000 in sight. Franklin Templeton’s announcement of launching a spot ether ETF has contributed to this upward trend. Several ERC-20 tokens, including Lido (LDO), Arbitrum (ARB), and Mantle (MNT), have experienced significant price increases.
Solana & Arbitrum Witness Significant Growth
Solana’s TVL has reached a milestone of $1.90 billion, which hasn’t been seen since mid-2022. In January, Solana’s TVL grew by 47% and has increased by over 500% since October 2023. Jupiter, Kamino, and Jito have played a crucial role in driving inflows into the Solana ecosystem. Arbitrum, a layer-2 scaling solution for Ethereum, has also witnessed a surge in TVL, reaching its highest ever at $2.9 billion. Notable protocols contributing to this growth include GMX, Hyperliquid, and Camelot.
Bitcoin’s Role in DeFi
Despite not being known for its DeFi capabilities, Bitcoin has seen a significant increase in TVL, reaching $927.5 million—a growth of 182.9% over the past month. Protocols like Merlins Seal, Lightning Network, and Thorchain have contributed to this rise. The soaring TVL across multiple chains highlights the growing importance of interoperability and the adoption of decentralized finance across various blockchain ecosystems.
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