DappRadar Report: DeFi Protocols Witnessed Massive Growth Last Month

In the 1st month of 2023, the decentralized finance protocols went through an elevation in terms of total value locked throughout diverse staking pools. The respective market saw a $74.6B value in staked assets. This figure is nearly 26% increased in comparison with the figure seen back in December 2022.

DappRadar’s Report Says DeFi Witnesses an Exciting Beginning in 2023

In the previous month, a monthly report was published by DappRadar in which the platform outlined the progress in the DeFi space.

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In parallel with this, the markets of non-fungible tokens (NFTs) have also gone through significant heights in the case of sales and trading volume. Optimism has come to the surface as the prominent DeFi player. The platform has seen an increase of nearly 57.44% in its total value locked (TVL).

The latest TVL of the platform is $808M. Sara Gherghelas (a blockchain analyst) stated that the transfer volumes of Optimism were potentially pushed ahead by a program focused on learn-to-earn incentives. As per Gherghelas, an abrupt decline in regular transfers was witnessed on the 17th of the previous month.

In Gherghelas’ words, a significant role might be played by the educational incentive projects to advance the onboarding and adoption of the DeFi sector.

Gherghelas elaborated that by offering a hands-on experience related to learning, the respective incentives can assist the consumers in obtaining a thorough knowledge about the DeFi technologies as well as the likely advantages they offer.

As a result of this, a broader usage and adoption of the DeFi services and products could be carried out, Gherghelas disclosed. Solana beheld a fifty-seven percent uptake in the TVL that reached the $548M level.

This was seen as a consequence of a token incentive project conducted by Marinade Finance. The respective project focused on rewarding people depositing SOL tokens by providing mSOL (the derivative of the token for liquid staking).

During the time from December and January, the protocol touched a TVL of almost $152 million. Nonetheless, Solana is not seeing everything positive as Everlend (a DeFi protocol) has declared shutting down its business on the 1st of February. The deficient liquidity was mentioned as a reason responsible for the respective closure.

Lido Finance Overturns Maker DAO to Become the Biggest DeFi Protocol

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The impending Shanghai upgrade of Ethereum is additionally playing a substantial role in the increasing staking in the sector of DeFi. The most recent move in this upgrade deals with withdrawal opening for the staking contracts on Ethereum.

In 2023’s January, Lido Finance overturned Maker DAO to turn out to be the biggest DeFi protocol. This became possible by the fame gained by the protocols related to liquid staking derivatives.

In the words of Gherghelas, the solutions provided by Lido for liquid staking have turned out to be beneficial for consumers who intend to maximize their staking returns. Gherghelas revealed that innovative staking is the thing that separates Lido from the rest of the DeFi protocols.

According to the analyst, this lets consumers avail of Ether’s liquid staking with no requirement to commit to the conventional 32 ETH as a minimum. Lido witnessed more than $8B in staked value in its platform with an uptake of approximately 36% since 2022’s December.

Gherghelas pointed out that the recent price increase in the markets of crypto assets contributed to the boost in the TVL of the DeFi world.