The DeFi space has recorded inflows in the first six months of the year with total value locked (TVL) soaring to $94.1 billion, a 72.8% increase. This growth is seen in almost all sectors of the digital asset market as sentiments continue to soar. The crypto market has notched huge institutional inflows following the approval of spot Bitcoin ETFs.
DeFi Activity Spikes
Decentralized finance has seen increased volumes this year as the wider market recorded upticks. A recent market update by cryptocurrency exchange Binance shows rising TVL from $54.4 billion to $94.1 billion. This marks a 72% growth in the last six months.
“This growth has benefited almost all areas in DeFi, including mainstream and niche markets, promoting the emergence of various protocols and providing on-chain access channels for previously inaccessible financial primitives… The Web3 gaming sector had a strong first quarter, but in the second quarter, the market capitalization of game project tokens and other altcoin markets fell sharply.”
The wider market rallied to a $2.27 trillion market cap, a year-to-date (YTD) growth of 37%. In Q1 2024, the market cap was over $2.5 trillion soaring 60% from 2023 after renewed interest from investors. Per the report, the last six months have been an airdrop season in layer 2 chains. Particularly, incentivized programs raised the TVL to $43 billion marking a 90% growth.
Stablecoins also saw a similar trajectory staying 14% shy of its 2022 peak before the collapse of Terra. However non-fungible tokens (NFTs) remain volatile as sales plunged.
Also Read: Mt Gox Set For Large Bitcoin Repayment Ahead of Ethereum ETF Launch
Institutional Investors Ignite Growth
The activities of centralized market players in the crypto market have increased prices and activity in crypto assets and DeFi respectively. The approval of spot Bitcoin ETFs by the United States SEC created a new investment window for traditional players to increase their exposure to Bitcoin.
As a result of billions poured in and anticipated bullish upticks, BTC price hit an all-time high above $73,000 before recording a correction. At the moment, Bitcoin trades at $67,235, moving up 6.5% in the last seven days.
Also Read: Shytoshi Kusama Spotlights Shiba Inu’s TREAT Token Blunder
The post DeFi TVL Soars 72% to $94 Billion This Year: Binance appeared first on CoinGape.
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