By Philip Maina
2 months agoTue Oct 31 2023 10:58:57
Reading Time: 2 minutes
- The total value locked (TVL) in DeFi platforms has increased by $9 billion moving from $35 billion to $42 billion in two weeks
- The increase is attributed to the current rise in crypto prices and the entrance of new investors
- Apart from the TVL, DeFi transactions are also on the rise
The recent rise in crypto prices has reflected in the DeFi world moving the total value locked (TVL) from slightly above $35 billion to $42 billion within 14 days. Apart from the rise in crypto prices, the increase in TVL has been attributed to the entrance of new investors. The transaction volume on DeFi platforms has also increased, an indication that crypto and DeFi investors are returning to the scene after a protracted crypto winter season.
A 120% Increase
The addition of $9 billion in two weeks has seen DeFi’s TVL touch a new three-month high according to DefiLlama. In the last two weeks, Ether (ETH), which rules the DeFi world, rose from below $1,600 to above $1,810. Other tokens majorly used in the space like Aave (AAVE) and Lido (LDO) also appreciated by between 25% and 35% within the same period.
Solana (SOL) has also recorded a significant increase in price within the same timeframe which has contributed to the TVL of its leading DeFi platform, Marinade, shooting up by around 120%. Top Ethereum-powered DeFi platforms have seen their TVL rise by between 37% and 55%
Ethereum accounts for 53.79% of total value locked on all chains followed by Tron (18.89%), Binance Smart Chain (6.78%) and Arbitrum (4.43%). Tron and Bitcoin lead in active users at 1.57 million and 1.1 million users respectively while Ethereum registered 326,808 users.
Funding DeFi Activities and Boosting Liquidity
The increase in the number of new DeFi investors comes despite EU regulator warning that DeFi poses serious risks to investors.
The rise in TVL can also be attributed to efforts by existing DeFi platforms to fund DeFi-centric activities and boost liquidity for a smooth user experience.
Although the bear season isn’t officially over, the rise in DeFi activities can help ease its effects.
