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 sector’s 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 Arbitrum’s 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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