Fresh statistics from DappRadar, a market intelligence company, indicate a significant surge in the total value locked (TVL) within the decentralized finance (DeFi) sector, reaching its highest level in 15 months.
DappRadar’s latest blog post highlights that DeFi’s TVL has now hit $192 billion, marking a 17% increase from the previous month and the highest figure recorded since February 2022. TVL represents the amount of capital secured within a protocol’s smart contracts, serving as a key indicator of the crypto ecosystem’s overall health.
The growth in TVL was predominantly fueled by rising token prices, particularly for Ethereum (ETH) and Solana (SOL), two leading smart contract platforms. Ethereum maintains the larger share of DeFi’s TVL, with its dominance currently at 68%. Meanwhile, Solana has seen a boost in memecoin trading and DeFi activity on its network, leading to an 11% surge in the value of its native SOL token over the past 30 days.
As of the time of writing, ETH is trading at $3,692, while SOL is valued at $158.94. Additionally, Bitcoin’s layer-2 solution, Merlin Chain (MERL), played a significant role in May, emerging as the largest sidechain for the crypto king, surpassing the Lightning Network in size.
According to DappRadar, the Layer-2 networks’ narrative remains strong, but Merlin has stood out as the top performer this month, becoming Bitcoin’s largest sidechain, with over $1 billion locked. Notably, more than half of Merlin’s value is held in Solv Finance, a protocol enabling users to deposit Wrapped Bitcoin and earn ‘Solv Points’ in return.
At the time of writing, MERL is trading at $0.441, reflecting a 10.10% decrease over the last 24 hours. To stay updated with the latest developments, readers are encouraged to subscribe to receive email alerts directly to their inbox.
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