DeFi starts to recover, with blocked value exceeding R$230 billion
CriptoFácil – The recovery of the cryptocurrency market is also boosting the Decentralized Finance (DeFi) sector which has seen Total Value Blocked (TVL) surge in recent days and cross the $45.33 billion mark. That is about 230 billion Brazilian reals quoted in reals.
TVL in DeFi is a specific metric that measures the amount of funds deposited into smart contracts. These funds can have different purposes, such as acting as collateral for a loan or forming part of a liquidity pool.
The value locked in DeFi fires
According to DeFi Llama data, the last time DeFi TVL reached the current level was in November last year. That month, cryptocurrency exchange FTX filed for bankruptcy and the crisis brought down the entire cryptocurrency industry, including DeFi. But now, the market has recovered again and so have major DeFi assets. Since January 1, when TVL was $38.75 billion, the amount locked in DeFi protocols has increased by nearly 17%.
Major DeFi protocols such as Lido Finance and MakerDAO have played an important role in the rise of TVL. For example, Lido TVL, the largest protocol in the sector, jumped 18.62% in the last week and 30.81% in the last month to $7.8 billion. Currently, the Lido protocol accounts for 17.21% of the total amount blocked in DeFi.
Meanwhile, the locked value of MakerDAO has jumped 8.49% over the past seven days and 15.96% over the past 30 days, to $7.01 billion today. The third largest protocol, AAVE, has seen TVL rise by 13.74% in the past week and 23.28% in the last month. At the time of writing, the TVL of AAVE is worth $4.59 billion. Curve Protocol also recorded an increase in TVL of 13.01% over the past seven days and 19.67% over the past month. Currently, the TVL value of the protocol is $4.37 billion.
Despite the recent rally, DeFi TVL is still far from its all-time high in December 2021, when it reached $181.22 billion.
DeFi tokens are also valuable
The rise in TVL appears to reflect the rally in the cryptocurrency, as most DeFi tokens also followed suit to the upside. For example, Lido Staked Ether has gained 15.9% over the past seven days, according to CoinGecko.
Already up 38.5% in 7 days, Curve Protocol token jumped 40.6% and Convex Finance’s CVX token jumped 39.6%. The UNI token is up 7.9% in the past seven days.
by CryptoFacil