The DeFi sector in Q1 2023 closed with a 37.44% increase compared to the previous quarter with a Total Value Locked of $83.3 billion. The popularity of scaling solutions such as Arbitrum, and Optimism has contributed to this growing interest in DeFi report shows.
Crypto airdrop programs have garnered much attention in the industry, and specifically for the highly expected Arbitrum airdrop, it was the major hype driver attracting the attention of a lot of traders in Q1.
Arbitrum, the Ethereum layer-two scaling solution, distributed over 1 billion ARB tokens to over 600,000 eligible addresses. The token’s market capitalization stabilized near $1.5 billion, with a current market capitalization ahead of its closest competitor, Optimism.
Optimism and Arbitrum have gained market dominance and kept their positions listing among the top 10 TVL blockchains. As one of the top performers, Arbitrum had a 118.40% increase, reaching $3.2 billion. On the other hand, Optimism had an 85% increase reaching $1 billion compared to the previous quarter.
Ethereum dominating the blockchain protocols in the DeFi landscape, gained a TVL of $55.8 billion, having an increase of 48.32%. This represents 66.95% of the entire DeFi TVL. Second place to Ethereum is the BNB Chain with an increase of 20.69%, reaching $7.2 billion in Q1 2023.
Tron ranks third on the list with a TVL of $5.2 billion. Tron, which is facing charges from SEC and against its founder Justin Sun, however managed to gain a 17.55% in Q1. Additionally, PancakeSwap tops the most used dapp in the industry with 1.37 million Unique Active Wallets in March 2023.
Further, Solana’s TVL increased by 127.05%, reaching $791 million. The report suggests that the increase is likely to have resulted from the DAO building tool SPL Governance. The SPL Governance now has about $179.75 million in TVL.
Despite the drop in DeFi TVL by 9.6% following the Silicon Valley Bank saga, the market made a comeback after the USDC reserve deposits held at Silicon Valley Bank were opened to the public, stabilizing the market in a 13% spike.
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