Decentralized finance (defi) and smart contract platform tokens rallied on Monday morning (ET) and the total value locked in defi jumped above the $40 billion zone for the first time since the mid-December 2022. Major smart contract platform coins by market capitalization rose 7.1% on January 9, 2023, with most posting double-digit gains over the past week.
Lido Finance emerges as the most dominant Defi protocol, surpassing Makerdao in TVL size
Cryptocurrency markets were positive at the start of the second week of 2023, with the overall crypto economy rising 3.6% to $893 billion on Monday around 11:00 a.m. (ET). Smart contract platform tokens saw a 7.1% increase to $274 billion, which equates to approximately 30.68% of the entire crypto economy. Among the top five smart contract platform coins, Solana (SOL) saw the largest gain, rising 24.2% in 24 hours.
Cardoon (ADA) followed, with ADA up 11.7% over the past day. Ethereum (ETH) is up 5.1%, BNB 5.5%, and the polygon (MATIC) swelled by 6.7% in 24 hours. Additionally, the top five smart contract assets saw double-digit spikes in the past seven days. Again, SOL led the pack, jumping 72.3% higher last week, and ADA increased by 28.8% over the same period. Ethereum (ETH) saw the smallest increase in the past seven days against major competitors, with the cryptocurrency rising 11.5% this week.
Of course, the increase in the price of smart contract platform tokens has also caused the Total Value Locked (TVL) in defi to inflate. Since mid-December 2022, the challenged TVL had been below the $40 billion range, but on January 9, 2023, it managed to climb back above it to around $41.1 billion on Monday. . While Makerdao was the most dominant defi protocol, Lido Finance is now the most dominant with 15.92% TVL in defi. Lido has a TVL of around $6.54 billion, while Makerdao follows with $6.44 billion. Lido and Makerdao are followed by Aave, Curve and Uniswap, respectively, in terms of TVL size.
Ethereum is still the most dominant in defi today, in terms of TVL size, as the chain’s $24.61 billion represents 59.88% of the total $41.1 billion locked. Binance Smart Chain has the second largest TVL with $4.41 billion, Tron comes in third with $4.13 billion, Polygon takes the fourth position with $1.05 billion, and the fifth largest challenge today. Today, when it comes to blockchains, is Arbitrum with $1.03 billion. Over the past day, challenged TVL jumped 2.99%, but TVL still has a long way to go to reach the high of $178.55 billion reached in November 2021.
What do you think of the state of decentralized finance and smart contract assets as we enter the second week of the new year? Share your thoughts on this topic in the comments section below.
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