DeFi Rockets Past $100B in Total Value Locked – CryptoMode

The decentralized finance (DeFi) ecosystem has achieved a remarkable milestone, as the total value locked across all protocols surpassed $100 billion for the first time since late 2021. 

This surge in capital locked on the blockchain is fueled by rising crypto prices across the board, which may trace back to spot Bitcoin ETF approval in January 2024.

DeFi’s $100 Billion Milestone: Liquid Staking Dominates 

According to data from DefiLlama, a leading analytics platform for the DeFi space, the global total value locked (TVL) in DeFi protocols reached $101 billion today, with over $5.95 billion in trading volume recorded in the past 24 hours.

Source: DeFiLlama

Liquid staking protocols are at the forefront of this locked value surge, with Lido commanding $38.7 billion in TVL. EigenLayer and the lending protocol Aave closely follow the staking ecosystem, with over $11 billion locked in each platform.

U.S. regulators’ approval of spot Bitcoin ETFs in January has unleashed a wave of institutional demand for the world’s largest cryptocurrency. 

According to research from BitMEX, assets in Bitcoin ETFs reached $28 billion on Mar. 8, when Bitcoin’s price surpassed $70,000 to set a new all-time high.

This influx of institutional capital has put immense pressure on over-the-counter (OTC) trading desks, with rumors circulating of platforms facing Bitcoin shortages and being forced to source liquidity from public exchanges. 

Major centralized exchanges like Binance, Coinbase, and Kraken have experienced outages due to the unprecedented trading volume. Crypto.com revealed it had hired 480 additional customer service representatives to handle the surge.

The Bitcoin rally has also ignited a frenzy in the meme coin sector. Shiba Inu and Pepe have recorded gains of 168% and 165%, respectively, pushing the total market capitalization of meme coins to a whopping $61 billion.

With all markets turning bullish, the native value of assets locked in DeFi protocols is rising. As such, the industry can proliferate while this momentum lasts.



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