DeFi TVL is at its highest level in 20 months, and several blockchains and layer-2s are contributing to this upward trend.
According to data from DefiLlama, Total value locked (TVL) across various protocols has just surpassed $69 billion for the first time since June 2022. This milestone marks a significant resurgence in DeFi activity across multiple blockchain networks.
TVL on Ethereum has surged 37% over the last month, hovering around $41B at press time. Protocols like EigenLayer are responsible for driving a massive inflow to the Ethereum network.
ETH has soared, with bulls looking at $3k as the next price target. This surge coincided with the announcement by financial giant Franklin Templeton of their intentions to launch a spot ether ETF, contributing to a growing trend in the market.
Several ERC-20 tokens have experienced significant price increases as well, including Lido (LDO), Arbitrum (ARB) and Mantle (MNT) surging up to 7% – 10%.
Solana & Arbitrum Take the Spotlight
Meanwhile, TVL on Solana has experienced a significant upside in the first few days of February, reaching a $1.90B TVL milestone not seen since mid-2022. In January, Solana’s TVL grew 47%, and over 500% since October 2023
Jupiter, Kamino, and Jito have been responsible for driving massive inflows into the Solana ecosystem, especially with the airdrop fever taking over the crypto community.
Arbitrum, a layer-2 scaling solution for Ethereum, has also witnessed a surge in TVL, reaching $2.9 billion, its highest ever. Notable protocols contributing to this growth include GMX, Hyperliquid, and Camelot.
Even Bitcoin Played A Key Role
Even though Bitcoin is not particularly popular for its DeFi capabilities, it has seen a significant uptick in TVL, reaching $927.5 million —an 182.9% increase over the past month. Protocols like Merlins Seal, Lightning Network, and Thorchain have driven this growth.
With TVL soaring across multiple chains, it’s evident that DeFi has transcended its initial roots on Ethereum and has become more of a multi-chain phenomenon. This shift underscores the increasing importance of interoperability and the growing adoption of decentralized finance across various blockchain ecosystems.
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