DeFi Data Shows That AVAX Total Value Locked Returns Above $10B

Total Value Locked (TVL) is a very important growth metric for DeFi because it shows how much crypto is deposited in those protocols.

Decentralized Finance (DeFi) protocols have been growing over the past year on Ethereum alternative blockchains such as Avalanche. 

According to DefiLlama data, one year ago the Total Value Locked within the AVAX ecosystem was $9.1 million and today it is $10.77 billion, which is an increase of 118.3k%. Nowadays, there are 156 DeFi protocols supporting the Avalanche ecosystem.

Avalanche TVL is now over $10 billion again since approximately three weeks ago, but it is still down 21.8% from its TVL all-time high of $13.79 billion in December 2021, as you can see below:

The top five DeFi protocols in the AVAX ecosystem (Aave, Trader Joe, Benqi, Curve, and Multichain), represent 71% of the total of AVAX TVL.

What Is the Percentage of AVAX TVL in the Market?

Although $10.77 billion seems like a lot of money, when it comes to comparing it with other blockchains it is not that big.

The total of all blockchains TVL is $208.12 billion at the time of writing. This puts AVAX’s TVL in fourth place, representing just 5.16% of the overall TVL.

Ethereum is in first place with $126.17 billion of TVL, this represents 59.22% of all TVL. There are 517 DeFi protocols in the network, according to DefiLlama data.

In second place is Terra, with $14.52 billion of TVL, in third place is Binance Smart Chain with $13.19 billion of TVL and in fifth place is Fantom with $8.72 billion of TVL.

To put you in perspective, the first five blockchains represent 81.8% of the overall Total Value Locked (TVL).

Has the AVAX Price Changed Recently?

AVAX is the 10th biggest cryptocurrency by market capitalization with $21.73 billion, according to CoinMarketCap. It is now trading at $88.79 and is down 0.74% in the last 24 hours.

The cryptocurrency is still down 38.70% from its all-time high of $144.85 in late November 2021. It has been in an ascending channel since it found support around $50. Now is facing resistance in its actual price, as you can see below:

AVAX’s price all-time high coincides with the all-time high of the TVL back at the beginning of December 2021.

In DeFi, it is very important to always consider the risks. Last month a Binance Smart Chain DeFi protocol was hacked and lost $80 million.

It will be interesting to see in a few years if Ethereum will still dominate in TVL after more DeFi protocols are developed in different blockchains.