After several weeks of bearishness in the crypto industry, an exciting development sprang up recently. The DeFi sphere has shown signs of recovery, with its TVL gaining over 16 billion dollars in 4 weeks.
The DeFi sphere experienced a major decline in total value locked assets from January to June 2022. But by July, things started to change, and the total value locked, which amounted to 72billion dollars at the beginning of the month, increased to 86billion dollars on the 24th of July.
Right now, the total value locked in assets is 88.7 billion dollars representing a gain of about 3 billion dollars in a few days.
This increase in value shows that so many DeFi assets have picked up and have kicked up a gradual recovery process.
TVL is the total value of digital assets deposited into dApps and the total sum of staked assets in a decentralized platform staking and liquidity pools. Since TVL deals with decentralized platforms, It is important we consider some dApps and their TVL.
The first example worth considering is Ethereum (ETH). Ethereum (ETH) is the blockchain that has the most TVL on the DeFi space in July. Ethereum (ETH) TVL was around 46 billion dollars on July 1 and by July 24, it surged to 55billion dollars, gaining over 10 billion dollars in 3 weeks.
Another one is Solana (SOL). It witnessed an increase about the same time Ethereum (ETH) rose from 2.47billion dollars TVL to 2.74 billion dollars gaining 27 million dollars. The last one is Avalanche. It also experienced a significant increase in TVL, jumping from 2.68 billion dollars to 3.07 billion dollars.
In summary, this increase in TVL for DeFi tokens indicates that the market is gradually recovering and August might just be the beginning of another booming crypto market season.