Smart contract tokens and the decentralized finance economy have been on a tear during the last month, gaining against the U.S. dollar. The market capitalization of the smart contract platform token economy has swelled by $78 billion over the last 30 days, increasing from $243 billion to the current $321 billion. Furthermore, the total value locked in decentralized finance (defi) has risen by $5.39 billion in the same time frame.
Smart Contract Tokens Experience Double-Digit Gains, Led by Oneledger, Harmony, and Waves
It’s been a rough crypto winter, to say the least, and after numerous insolvencies and bankruptcies within the industry, crypto assets have been hit hard. The latest, and one of the most tragic blowouts last year, took place 67 days ago when FTX was found to be insolvent and the company filed for bankruptcy protection on Nov. 11, 2022. The crypto economy took a beating during the last two weeks of November and into December, and the lackluster end-of-the-year holiday market action made things worse.
Approximately 30 days ago, on Dec. 18, 2022, the smart contract token economy was worth $243 billion, and a great deal of coins lost considerable value. Ethereum (ETH), for instance, was down 6.1% that week, and cardano (ADA) was down 14.4%.
All ten of the leading smart contract coins that week were down by double digits against the U.S. dollar. But over the last month, the smart contract platform token economy grew by $78 billion, and as of Jan. 17, 2023, the entire lot is worth $321 billion.
Decentralized Finance Total Value Locked Increases by $5.39 Billion in One Month
Smart contract tokens that have made major moves this past week include oneledger (OLT), harmony (ONE), waves (WAVES), solana (SOL), fantom (FTM), and avalanche (AVAX). The aforementioned smart contract tokens increased by 37.2% to 53.7% in value against the U.S. dollar in seven days. Other notable smart contract coin gainers this week include holo (HOT), ronin (RON), parsiq (PRQ), and immutable x (IMX). The rise in smart contract tokens over the last month has fueled decentralized finance stats as well.
Currently, defi statistics show that from Dec. 18, 2022, to Jan. 17, 2023, or 30 days, the total value locked (TVL) in defi increased by $5.39 billion. At the time, 30 days ago, the TVL in defi was around $39.9 billion, and it has since grown to $45.29 billion. The largest and most dominant defi protocol on Jan. 17 is the liquid staking solution Lido.
The defi protocol Lido has an overall TVL size of around $7.81 billion or 17.2% of the $45.29 billion TVL. Most of Lido’s increase is due to ether’s 20.6% rise against the U.S. dollar. The same can be said about the entire defi TVL as the growth is highly correlated with the double-digit gains smart contract tokens have accrued over the last month.
What do you think is driving the recent growth in the smart contract token and defi economy? Share your thoughts in the comments below.