The total value of assets locked on Avalanche-based decentralized finance protocols (DeFi) has hit a 9-month high amid the AVAX token’s market rally.
Interestingly, the increase comes as the number of locked AVAX tokens is at its lowest level since August 2021. Over the past month, network users have withdrawn more than 15 million AVAX tokens from the protocols on the network, despite the rising dollar value of the assets.
DeFiLlama facts shows that Avalanche’s TVL is currently around $875 million, up 66% in the last three months and the highest level since March. This also places the network in TVL’s top 10 blockchain networks.
Avalanche’s thriving ecosystem
According to data from DeFiLlama’s dashboard, Benqi emerges as the leading DeFi protocol on Avalanche. Benqi operates as a non-custodial liquidity market protocol, allowing users to stake and lend their digital assets to earn interest.
The protocol’s TVL recently crossed the $500 million threshold, accounting for more than 50% of the blockchain network’s total TVL.
Other top DeFi protocols on Avalanche include AAVE, Trader Joe, and GMX, with their TVLs currently at $254 million, $110 million, and $61 million, respectively.
In addition, trading volume of decentralized exchanges (DEX) on Avalanche has also grown recently. DeFiLlama facts shows the metric improved 193% to $1.3 billion over the past week. If this trend continues, the network will be on track to beat the total volume of $2.7 billion recorded in November.
In the block facts further shows that AVAX trades over $100,000 reached almost 1,000, indicating a bullish trend for the network. Nevertheless, this figure remains below the level of the peak of the previous bull market.
Additionally, Avalanche’s thriving gaming ecosystem is starting to attract more attention and accolades from the crypto community.
AVAX price rises
Meanwhile, Avalanche’s TVL’s notable growth comes primarily from the significant increase in AVAX’s price.
Despite a general decline in the cryptocurrency market today, AVAX stands out with a gain of 7.4%, which allowed it to reach a yearly high of $36, marking the best price performance since May 2022.
In the past 30 days Crypto Slates data shows a 108% increase in the token’s value, with a 64% increase recorded in the past week alone.