Total value locked (TVL) within the decentralized finance (DeFi) sector has soared to its highest level in 15 months, according to new data from market intelligence firm DappRadar.
DappRadar said in a new blog post that DeFi’s TVL reached $192 billion, up 17% from the previous month and the highest since February 2022.
TVL represents the amount of capital deposited within a protocol’s smart contracts and is often used to measure the health of the cryptocurrency ecosystem.
According to the cryptocurrency analytics firm, much of the growth has been driven by rising prices of tokens, particularly smart contract platforms Ethereum (ETH) and Solana (SOL).
“Ethereum is accounting for a larger share of overall DeFi TVL, with Ethereum’s dominance at 68% this month. Following this, Solana has seen growth over the past few months, driven by memecoin trading and DeFi activity on the network. Moreover, the native SOL token has surged 11% in the last 30 days.”
As of this writing, ETH is trading at $3,692 and SOL is worth $158.94.
DappRadar goes on to point out that Bitcoin’s (BTC) layer 2 solution Merlin Chain (MERL) also contributed significantly, becoming the cryptocurrency king’s largest sidechain in May, surpassing the Lightning Network.
“The story of Layer-2 networks continues to be strong, but the real top performer this month was Merlin. It has become the largest Bitcoin sidechain, more than three times larger than the payments-focused Lightning Network.
More than half of Merlin’s $1 billion is parked in Solv Finance, a protocol that allows users to deposit Wrapped Bitcoin and receive ‘Solv Points’ in return.”
At the time of writing, MERL is trading at $0.441, down 10.10% in the last 24 hours.
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