Bitcoin Surge Propels DeFi TVL Past $100 Billion Milestone
The decentralized finance (DeFi) sector has surpassed a significant milestone, with the total value locked (TVL) in DeFi protocols exceeding $100 billion.
The surge in capital locked on-chain is primarily attributed to the renewed enthusiasm surrounding Bitcoin and the recent launch of spot Bitcoin (BTC) exchange-traded funds (ETFs) in January.
According to DefiLlama , a prominent data provider for DeFi statistics, the global TVL in DeFi protocols reached $100.1 billion, accompanied by a trading volume of over $10 billion in the past 24 hours at the time of writing.
Although these figures fall short of the previous record of $189 billion set in November 2021, they mark a significant achievement for the DeFi ecosystem.
Leading the charts in terms of locked value is the liquid staking protocol Lido, with an impressive $38.7 billion locked on-chain.
Following closely behind are the staking ecosystem EigenLayer and the Aave protocol, with over $11 billion locked in each, respectively.
The surge in DeFi TVL beyond the $100 billion mark is a momentous occasion, as it represents the first time in nearly two years that the sector has reached such heights.
This growth can be attributed to the positive sentiment that has returned to the crypto markets since the launch of spot Bitcoin ETFs.
The institutional demand for Bitcoin ETFs has been instrumental in driving the price of the cryptocurrency to new all-time highs, surpassing $70,000 on March 8.
A recent research from BitMEX reveals that assets in Bitcoin ETFs reached a staggering $28 billion on that day.
Notably, this analysis excludes assets from Grayscale’s Bitcoin Trust, which underwent a conversion from an over-the-counter (OTC) product to an ETF in January.
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