The digital asset market has recorded several wins this month with Bitcoin (BTC) hitting a 16-month high and surging activities around decentralized finance (DeFI) applications.
According to data from DefiLlama, the total value locked (TVL) on DeFi protocols has soared to $42 billion, marking a three-month high, gaining $6.2 billion from its $35.8 billion standpoint two weeks ago.
The whooping $6.2 billion growth in roughly 14 days comes on the heels of renewed market activity as new liquidity gets pumped into the market. This can be seen in increasing activities of most protocols as altcoins continue to climb.
Several analysts have pinned the growth in the market on the rise in the price of BTC although the major factors changing the tide for DeFi protocols are rising prices of related tokens and inflows from investors looking to earn rewards.
💥 Digital assets under management have soared by 6.74% to $31.7 billion after a string of positive developments amid wider market uncertainties.#CryptoNews #BullMarkethttps://t.co/zFGezaY9IG
— Cryptonews.com (@cryptonews) October 27, 2023
Defi transactions surges
Data from DefiLlama show that DeFi transactions tapped a seven-month high with $4.4 billion recorded on Oct 24 as staking protocols continue to evolve.
Solana’s (SOL) biggest lending protocol, Marinade notched a 120% growth in TVL following a rollout of its native token which was spiked in recent days by renewed market activities.
📈💸 Bitcoin’s Climb to $35,000 Fuels Surge in Crypto Trading Activity – Is the Bull Market Starting?
The cryptocurrency market has found new momentum by a recent rally that propelled Bitcoin’s value towards the $35,000 mark.#CryptoNews №cryptocurrencyhttps://t.co/VB8NxT8cMP
— Cryptonews.com (@cryptonews) October 30, 2023
Jito, Marinade’s competitor, saw the TVL on its platform soar by 190% to $168 million while similar products across other chains also recorded growth.
This year, Solana has been described as an institutional investor favorite following its multiple weeks of inflows rising to new highs around trading activity.
On the other hand, Ethereum (ETH) has struggled this year as institutional investors lack confidence in its products leading to massive outflows.
However, the last two weeks have seen the largest altcoin surge in market prices and trading volumes. At press time, ETH trades at $1,782 an increase from $1,590 at the same time frame.
Enzyme Finance, Spark, and Stafer also recorded mass inflows and growth ranging between 35% and 55%, below their Solana counterparts but a massive increase from previous weeks.
The wider market goes green
Avalanche and Lido saw massive inflows of 34% and 25% respectively alongside Sui which posted a TVL growth of 40 million taking it over the $70 million mark.
Similar growth was recorded in the Aptos network as layer 1 networks also benefited from the market’s new wave.
Bitcoin currently trades at $34,511 recording a 27.77% growth in the last 30 days on the backs of a potential spot BTC ETF approval.
While the Securities and Exchange Commission (SEC) has rejected every previous spot BTC ETF application, certain experts and wealth management firms believe that approval is imminent and could come next year.
