As the cryptocurrency markets start to bounce back, things have gotten much more interesting. In the decentralized finance ecosystem, numerous chains note a steep TVL increase. Solid growth for Optimism, Arbitrum, Algorand, and Ethereum shows the industry has begun to rebound.
A Massive DeFi TVL Growth Spurt
Even though the overall Total Value Locked in decentralized finance remains below $70 billion, things don’t look horrible. Several networks have seen a strong increase in TVL over the past month, even though there is still more work to do. Reclaiming over $250 billion in combined TVL seems virtually impossible at the current rate, but individual networks note a strong comeback.
There is reason to be optimistic where Optimism is concerned. The scaling solution for Ethereum has always been of interest to DeFi users due to its increased speed and efficiency. Moreover, it is home to various prominent protocols, including Aave V3, Synthetix, Uniswap, PoolTogether, Stargate, etc. Thanks to a monthly Total Value Locked increase of 315%, Optimism is now the eighth-largest chain for DeFi TVL.
Momentum for Arbitrum is equally promising, even if it is not as spectacular. Seeing the DeFi TVL increase by over 50% in a month remains stunning, even if it pales in comparison to a 315% gain. Arbitrum is on the path to surpassing $1 billion in Total Value Locked again, making it the ninth-largest network by TVL. It is well ahead of Fantom and Mixin. The growth is mainly attributed to GMX, Sushi, and Dopex.
Algorand is also sneaking up the rankings thanks to this month’s 37.46% DeFi TVL increase. A prominent development, even if the network represents just over $230 million in Total Value Locked. Algorand noted strong growth for Humble DeFi, Pact, and Folks Finance. There are still only nine decentralized finance protocols on this network, which is relatively low.
Ethereum Sprints Away From The Pack
In a somewhat surprising development, the Ethereum network strengthens its position as the “king of decentralized finance”. More specifically, it does so where the Total Value Locked is concerned, thanks to a 34.31% jump in TVL. Part of the momentum is fueled by the recovering ETH price, although it seems growth can be found across all major protocols. Outliers include Lido (+54.86%), Instadapp (+59.69%), and Rocket Pool (+82.16%). Very solid figures across the board and the appeal of liquid staking becomes even more outspoken.
Thanks to this gain, Ethereum runs away from networks like Tron, BNB Chain, and Avalanche. It is remarkable how Tron overtook BNB Chain as the second-largest network for DeFi TVL, although the gap between both chains is relatively small. Ethereum is on its way to crossing $40 billion in Total Value Locked again, representing nearly 60% of all TVL across the different blockchains.
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