DeFi Total Value Locked Zooms To $50B, Blast Deposits And Solana-Based Protocols Drive Growth

DefiLlama data indicates that the total capital locked or staked across all decentralized finance (DeFi) protocols peaked at $49.6 billion, on Dec. 5, 2023. For the first time in six months, the value of underlying assets increased, and investors looked to secure a yield on their crypto holdings.

Also, transactional volume in the past 24-hours hit $4.4 billion. In November 2023, more than $5.4 billion changed hands on a single day — the highest since March 2023, CoinDesk reported.

In mid-October 2023, the sector experienced multiyear lows. Currently, it has increased by $15 billion from those levels.

Blast, a newly announced Layer 2 project, received more than $700 million in deposits from traders and investors who remained not concerned that assets cannot be withdrawn until at least March 2024.

Blast is scheduled to go live in 2024.

Ethereum, the primary asset used across the DeFi market, rose 42% since Oct.13, 2023, which is ahead of the whole DeFi market (41%). The majority of DeFi protocols offer yields on stablecoins, which are pegged to traditional fiat currencies like the dollar, euro, or sterling.   

Ethereum shifted to a proof-of-stake blockchain in early 2023 which implied holders could stake ether to become a network validator and receive rewards. This transition led to liquid staking players, Lido and RocketPool, which combined are responsible for 45% of DeFi's total value locked. Currently, Lido offers an annual yield of 3.7% whilst RocketPool offers 3.92%.

Liquid staking enables investors to generate a yield from Ether staking while receiving a token that can be used elsewhere across the DeFi ecosystem.

With institutional interest around Solana rising, TVL on Solana-based protocols marginfi, Jito, and Marinade Finance skyrocketed between 60% and 120% in the past 30 days.

In November, Grayscale's Solana Trust traded at an 869% premium. Jito offers its stakers a yield of 6.96% leading to $327 million in inflows since Oct. 13, 2023.

Now Read: Bitcoin Blasts Past $42,000 While Bigtime, Ordi, Celestia Tokens Face Liquidation Bloodbath

Image: Shutterstock