The total value of all assets locked on decentralized finance protocols (DeFi) has risen to a three-month high of $42 billion, after being at its lowest since February 2021 just two weeks ago, according to DefiLlama data.
The revival of the DeFi market is based on two factors: rising asset prices and new inflows of participants looking to generate returns through staking and lending.
In addition to a rise in asset prices, transaction volume through DeFi protocols rose to the highest since March at $4.4 billion on October 24, according to DefiLlama.
Solana’s most comprehensive lending protocol, Marinade, saw a 120% increase in total value locked (TVL) this month following the release of its native staking product, which offers yields of 8.15% APY in addition to the 7.15% rate 7% on liquid staking. Marinade’s rival protocol Jito is up 190% to $168 million in TVL over the same period.
On Ethereum, meanwhile, the amount of capital on Enzyme Finance, Spark and Stader have all increased by between 37% and 55%, outpacing the rise in asset prices to illustrate new inflows.
The recently released layer one blockchains Sui and Aptos have also seen positive growth this month, with TVL on Sui increasing from $34 million to $75 million. Aptos has been boosted by increased activity on lending platform Thala, with total TVL also hitting the $75 million mark this month.
Despite a fruitful month, risks remain throughout the DeFi sector as even the smallest decline in ETH’s price would lead to notable increases. liquidations in the chain. Currently, there is a $76.2 million position on Aave that will be liquidated if ETH crosses $1,777, while over $100 million will be liquidated if the price falls by 20%.