The decentralized finance (DeFi) sector appears to be on its way to recovery after a substantial period of stagnation.
Total value locked (TVL) on DeFi platforms fell from over $50 billion to under $40 billion following the collapse of crypto derivatives exchange FTX in November last year.
But data from DefiLlama suggests that the cryptocurrency sub-sector is back on track, as the overall TVL on DeFi platforms once again surpassed the $50 billion mark.
The TVL of a blockchain represents the total capital contained in its smart contracts. TVL is calculated by multiplying the amount of collateral locked up in the network by the current value of the assets.
Total DeFi TVL hit $51.1bn on Feb. 16, the first time it has reached that level since the FTX crash. The TVL is now down to $48.78 billion at the time of writing.
Lido DAO (LDO) has the highest TVL among DeFi protocols. The total value locked on the platform is now $8.67 billion, up 12.07% from last month. Ethereum (ETH) staking service also accounts for 17.77% of total DeFi TVL.
MakerDao (MKR) follows Lido with $7.4bn in TVL, up 5.95% from last month. It is followed by Curve DAO (CRV) with $4.97 billion, up 13.89% from last month.
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