The digital asset market has witnessed significant successes this month, with Bitcoin (BTC) reaching a 16-month high and a surge in activities surrounding decentralized finance (DeFi) applications.
Data from DefiLlama reveals that the total value locked (TVL) on DeFi protocols has reached $42 billion, marking a three-month high and showing a substantial increase of $6.2 billion from its standing of $35.8 billion just two weeks ago.
The remarkable growth of $6.2 billion in approximately 14 days coincides with renewed market activity, reflecting an influx of new liquidity into the market. This is evident in the increased activities of various protocols as altcoins continue to experience upward momentum.
Analysts attribute the market growth to the rise in the price of BTC. However, the primary factors influencing the shift for DeFi protocols include the increasing prices of related tokens and inflows from investors seeking to earn rewards.
Defi transactions surges
According to data from DefiLlama, DeFi transactions reached a seven-month high on October 24, recording $4.4 billion. This surge in transactions is attributed to the ongoing evolution of staking protocols.
Marinade, Solana’s largest lending protocol, experienced a remarkable 120% growth in Total Value Locked (TVL) following the launch of its native token. The renewed market activities in recent days have contributed to the increased TVL.
Jito, a competitor of Marinade, observed a surge in TVL by 190%, reaching $168 million. Similar products across other blockchain networks also witnessed growth during this period.
This year, Solana has earned a reputation as a favorite among institutional investors, experiencing multiple weeks of inflows that reached new highs in trading activity. In contrast, Ethereum (ETH) has faced challenges as institutional investors have displayed a lack of confidence in its products, resulting in substantial outflows.
However, the last two weeks have seen a significant surge in market prices and trading volumes for Ethereum. At the current moment, ETH is trading at $1,782, an increase from $1,590 in the same timeframe.
Other altcoins, such as Enzyme Finance, Spark, and Stafer, have also recorded substantial inflows and growth ranging between 35% and 55%. While these figures are below their Solana counterparts, they represent a significant increase compared to previous weeks.
The wider market goes green
Avalanche and Lido experienced substantial inflows of 34% and 25%, respectively, while Sui saw a remarkable Total Value Locked (TVL) growth of 40 million, surpassing the $70 million mark.
Similar growth trends were observed in the Aptos network, indicating that layer 1 networks are also benefiting from the recent wave in the market.
Bitcoin is currently trading at $34,511, reflecting a growth of 27.77% in the last 30 days, attributed to the anticipation of a potential approval of a spot Bitcoin ETF. While the Securities and Exchange Commission (SEC) has rejected all previous spot BTC ETF applications, certain experts and wealth management firms believe that approval is imminent and could potentially happen next year.