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Decentralised finance (challenge) has always been the most scalable area of the web3 space. With new innovations and protocols popping up in the DeFi industry, the ecosystem total value locked (TVL) continued to increase until the bear market stepped in.
The bear cycle has led to many slowdowns in many areas of the we3 industry, including the challenge. However, As a result of the so-called "mini bull run", we have seen tvs begin to rise from the lows and the nearly 20% increase since the beginning of the year.
DeFi TVL Surges Nearly 20%
According to data from DeFiLlama, DeFi TVL has exceeded $45 billion — its highest point in the past two months. Major DeFi protocols such as Lido Finance and MakerDAO played a significant role in the DeFi TVL rise. Lido has amassed double-digit gains over the past week, adding $8.4 billion to the DeFi ecosystem since its lower low late last year.
Although the increase in tvl seems to reflect the crypto rally as most of the underlying challenge tokens have also followed the same uptrend, It should be noted that defi tvl is still a long way from its historic peak of 2021.
Notably, liquid staking protocol as lido finance is the accelerator of the increase in power of the challenge ecosystem, with the largest share of the challenge market with 14.75% domination and leaving the former challenge king, makerdao, with a 13.25% percentage share, by defillama.
As reported by NewsBTC, the reason behind the rapid increase in the momentum of Lido is the Ethereum Merge, which triggered the popularity of liquid staking protocols such as Lido Finance. As a result of the merger, total lido ownership increased by 10% from €4.43 million on 15 September 2022, the date of the merger, to more than €4.8 million today.
Other Accelerator Of The DeFi TVL Rise
Aside from Lido’s aid in the DeFi TVL surge, the high-throughput layer-1 blockchain network, Algorand, has also been an assistant following its 123% spike over the past week. It currently has 176 million dollars in tvl, with five of the six best challenge protocols on the network having made significant percentages of wins in the last 7 days.
Algofi has increased 121 percent over the last seven days. Funding for people has increased by 490 per cent, the pact by 136 per cent and credit by 202 per cent, giving a massive boost to the ecosystem.
Aave and Uniswap have always contributed greatly to the DeFi ecosystem TVL, with Aave recording over 10% in gains in the last 7 days and Uniswap recording nearly 7% in gains over the same period. As far as blockchain is concerned, Ethereum is always the lead dog with the greatest share in the tvl defi.
Ethereum has a DeFi market share of over 50%, with a TVL of $27.16 billion. Over the last few days, against the backdrop of the global market recovery, eth has recorded significant value gains.
ETH finally broke the $1,300 zone and has climbed to a higher high above $1,500. While eth is still a long way from its peak, the second largest crypto by market capitalization is striving to reach its end and beyond.
