Avalanche (AVAX) has surpassed $10 billion in total value locked in its network, making it the fourth largest DeFi ecosystem.
- Avalanche now the fourth largest DeFi ecosystem by TVL
- Avalanche TVL gains 20% in a week leaves Fantom, and Solana behind
- DeFi exponential growth
Despite the worst altcoin carnage in months, Avalanche (AVAX), a unique high-performance smarts contract platform, continues to rally. Its entire volume of assets locked (the sum of the USD-denominated prices of all cryptos in active Avalanche-based dApps) has surpassed the $10 billion mark for the first time.
Avalanche’s TVL metrics are almost $10.6 billion, according to statistics from major DeFi analytical dashboard DeFiLLama, making it the fourth largest Decentralized Finance (DeFi) ecosystem.
To overshadow the Fantom (FTM) and Solana (SOL) ecosystems, the Proof-of-Stake (PoS) blockchain network increased its total value locked (TVL) by 20% in the last seven days.
The exponential growth of the DeFi market reflects the potential of digital currencies and decentralized platforms to provide an alternative to the traditional finance paradigm, which has been steadily consolidating for decades, suffocating innovation and reducing the importance of financial inclusion.
DeFi’s recent growth has been phenomenal. In late 2020, the DeFi derivatives market’s TVL was around $875 million, but it is now valued at more than 200 billion. That means the DeFi market has increased by about 23,000 percent in just over a year.
In November 2021, Avalanche announced the launch of a $220 million fund that will be primarily focused on four key areas: DeFi, enterprise applications, NFTs, and culture applications, which includes social tokens and gaming, but could also be used for other initiatives like security token issuances and the development of digital identities.