DeFi TVL Surpasses $50 Billion as Assets Value Rises
DeFi protocols reach a $50B milestone amid rising asset values and investor interest, with Ether and Solana-based projects leading gains.
As the value of assets surges and investors' interest rises, DeFi protocols hit a $50 billion capital milestone for the first time in six months. DefiLlama data shows a $15 billion increase since October 13.
Blast, a new layer 2 project, attracted over $700 million in deposits, despite withdrawal restrictions until March. This shows how much investors are interested in yield generation.
Ether (ETH) has risen 42% since October 13, performing better than the overall DeFi market which rose by 41%. DeFi yields often involve stablecoins, which are backed by fiat currencies like the dollar.
The growth of the DeFi sector was partly caused by Ethereum's shift to a proof-of-stake blockchain, promoting liquid staking. Lido and RocketPool dominate this market, offering annual yields of 3.7% and 3.92%, respectively.
Protocols on the Solana network have also seen a significant jump in TVL (Total Value Locked), attracting institutional interest. Grayscale's Solana Trust traded at a high premium, indicating strong institutional demand.
A Solana's liquid staking protocol, Jito offers a 6.96% yield, which caused an inflow of $327 million since mid-October.
