The DeFi sector has experienced a significant increase in both activity and token prices, primarily driven by Bitcoin’s October rally. Central to understanding this landscape is the concept of Total Value Locked (TVL) and decentralized exchange (DEX) volumes, two critical metrics that offer insights into the health and trajectory of DeFi protocols.
TVL, the aggregate value of assets deposited in DeFi protocols, serves as a barometer for sector health and investor sentiment. CryptoSlate analysis found an interesting growth pattern across various chains. Ethereum, the frontrunner with $25.336 billion in TVL, has seen a 31.14% increase over the past month, cementing its dominant position in the DeFi space. Solana, though lower in overall TVL, showed the highest growth rate at 89.31%. Notably, all chains recorded positive growth over the month, indicating a robust expansion across the sector.
The number of active users on these chains offers additional insights. Despite its lower TVL, Tron boasts a significantly larger active user base of 1.69 million, which could result from a more retail-oriented user landscape. Conversely, Ethereum’s lower active user count than its TVL might indicate a higher engagement of institutional or sophisticated, high-net-worth investors.
The market cap to TVL ratio is another critical metric, shedding light on the market’s perception of a chain’s value. Ethereum’s ratio of 9.72 suggests a mature market. In contrast, Solana’s higher ratio of 43.49 indicates either potential growth opportunities or an undervalued ecosystem, warranting closer investor scrutiny.
|1D Change||7D Change||1M Change||TVL||Stablecoins||24h Volume||24h Fees||Market Cap to TVL ratio|