According to CoinDesk, the total amount of capital locked or staked across all decentralized finance (DeFi) protocols reached $50 billion on Tuesday for the first time in six months. The increase is attributed to rising asset prices and fresh inflows. Since October 13, the value of some Solana-based protocols has risen by as much as 120%, and the newly announced layer-2 platform Blast received over $700 million in deposits.
Data from DefiLlama shows that DeFi's total value locked (TVL) has gained more than $15 billion in six weeks. Ether (ETH), the primary asset used across the DeFi market, has risen by 42% since October 13, outpacing the whole DeFi market, which increased by 41%. Transactional volume has also risen, with more than $5.4 billion changing hands on a single day last month, the most since March.
The liquid staking market, led by Lido and RocketPool, has been a significant contributor to DeFi's TVL, accounting for 45% of the total. Lido currently offers an annual yield of 3.7%, while RocketPool offers 3.92%. Liquid staking is a form of derivative that allows investors to generate a yield from staking ether while receiving a token that can be used elsewhere across the DeFi ecosystem.
TVL on Solana-based protocols Marginfi, Jito, and Marinade Finance has jumped by between 60% and 120% in the past 30 days as institutional interest around Solana continues to mount. Grayscale's Solana Trust traded at an 869% premium last month, demonstrating significant demand from the institutional market. Jito, Solana's liquid staking protocol, offers stakers a yield of 6.96%, a level that led to $327 million in inflows since October 13.