- The total value locked (TVL) in DeFi has grown by 26.82% in January and thus stood at the $74.6 billion mark.
- The top 10 was as follows: Ethereum, BNB Chain, Tron, Avalanche, Arbitrum, Polygon, Optimist, Fantom, Cronos and Solana.
- Ethereum covered 65% of the market with $48.6 billion.
Cryptocurrencies are revolutionary, and this is much more than a concept: assets are in the hands of users like never before. The advantages offered by the ecosystem invite more and more actors to approach, study and inquire about digital currencies. January was a positive month.
Bitcoin, the main cryptocurrency by market capitalization, closed with a growth of 38.07% in the first month of the year. This, as always happens, also had an impact on the rest: Ethereum (ETH), Polygon (MATIC), Binance Coin (BNB), Cardano (ADA) and Polkadot (DOT), among others. Decentralized finance (DeFi) also saw bullish movements that excite optimists of having a great 2024 after a red 2023.
dappradarthe platform that records the movements within said industry, shows that The total value locked (TVL) in DeFi has grown by 26.82% in January and thus stood at the $74.6 billion mark. “The DeFi market showed signs of recovery”the researchers stated, which was published by CryptoSlate.
The exposed number is far from the all-time highs, although it is the beginning of a process that is expected to be bullish. This TVL in DeFi is the highest in the last four months. ANDBy comparison, November 2022 was only at $50 billion, the lowest in the last quarter of last season.
Blockchain with the highest TVL
The blockchain with the largest capital locked is none other than Ethereum. The most important blockchain in the ecosystem tops all the lists with $48.6 billion, which represents almost 65% of the total. Compared to December, it grew by 29%.
“The upcoming Shanghai update, scheduled for March 2023, is garnering market attention and is expected to significantly reduce the risk of ETH staking by allowing withdrawals. The upgrade will also provide an opportunity for liquidity protocols to grow, and governance tokens for some of these protocols have already jumped since the beginning of the year.”, revealed the report.
The BNB Chain (BNB) and Tron (TRX) are the ones that complete the podium, although very far from the creation of Vitalik Buterin. The one developed by the most powerful centralized exchange has $7.1 billion, while Justin Sun’s is at $5.3 billion. Their increases were close to 18%
The one that made the biggest jump was Optimism, a blockchain with potential and great records in the past months: from December to January it rose 57% from $589M to 821M. Cronos (CRO) and Solana (SOL) stayed at 53% and 51%, respectively.
The top 10 was as follows: Ethereum, BNB Chain, Tron, Avalanche, Arbitrum, Polygon, Optimist, Fantom, Cronos and Solana.
Lido Finance, the dominant protocol
The most dominant protocol during January was Lido Finance, with a TVL of $8 billion. Its growth from December to this part was surprising and abrupt: it increased by 36.77%.
“What sets Lido apart from other DeFi protocols is its innovative staking solution, which allows users to access ETH staking rewards without committing to the traditional minimum of 32 ETH,” the report reported.
Meanwhile, the non-fungible tokens (NFT) market also saw increased adoption in early 2023. The study conducted by Dapp Radar recorded “a trading volume of $946 million and a sales count of 9.5 million, 38% and 42% more than in December”. These are the highest figures since last June.
The TVL increase is great news for the start of 2023 and this is expected to continue throughout the year. Can this trend be sustained in an age with so much FOMO/FUD?
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