Crypto prices have surged in value over the past four months, causing the total value locked (TVL) in decentralized finance (DeFi) to rise high above the values seen at the end of last year.
According to data presented by BitcoinCasinos.com, the total value locked in DeFi jumped by 46% year-to-date reaching over $84bn this week.
More than 70% of TVL in DeFi Tied to Ethereum, BSC and Tron Battle for Second Place
After their worst annual performance since 2018, crypto prices have shown resilience this year. The total crypto market cap increased by 70% year-to-date and hit over $1.27trn this week. Ethereum`s value jumped 67% in this period, Cardano and Polygon rose by 73% and 50%, respectively, and Solana witnessed a huge 151% price growth.
The double and triple-digit price increases have pushed the total value locked in decentralized finance way above the levels seen in the first weeks of 2023.
According to CoinMarketCap data, the total value locked (TLV) in DeFi amounted to around $56bn in January, the lowest value since March 2021. In February, this figure jumped to over $71bn. Statistics show March saw over $75bn TVL in DeFi, despite the short drop in the third week of the month. This value jumped to more than $84bn since then, showing a 48% increase in four months.
More than 70% of the total value locked in DeFi, amounting to around $60bn, is tied to Ethereum. Binance Smart Chain (BSC) is the second-largest blockchain in TVL size, with 6.68% of the total value locked. Tron ranked third with 6.54% of the total value. Arbitrum, Polygon, and Avalanche are the next largest blockchains, with 3.08%, 1.68%, and 1.37% share of TVL.
Over 1.8 Million New DeFi Users in a Year
According to Dune Analytics data, which analyzed the number of unique addresses involved in buying or selling specific projects associated with DeFi, the number of DeFi users has significantly increased in the past year.
In January 2022, there were close to 5 million DeFi users worldwide. Over the next three months, this figure jumped to almost 5.4 million and continued rising. By January 2023, nearly 1.3 million users joined the DeFi space, with their total number rising to 6.6 million.
Statistics show there are now more than 7.2 million DeFi users worldwide or 1.85 million more than in the same month a year ago.