The total value locked in smart contracts of various DeFi protocols grew by 27% in January 2023. The non-fungible token (NFT) segment also increased during the month.
A monthly report by DappRadar showed that the decentralized finance market saw strong growth in January 2023. The total value locked (TVL) in various DeFi protocols reached $74.6 billion, up 26.82% from December 2022.
According to the report, DeFi protocols of almost all blockchains showed a rise in early 2023:
- Optimism grew by 57%, TVL reached $808 million;
- Cronos grew by 53%, TVL reached $541 million;
- Solana grew by 51%, TVL reached $548 million;
- Polygon grew by 46%, TVL reached $1.4 billion;
- Ethereum grew by 29%, TVL reached $48.6 billion;
- Avalanche grew by 26%, TVL reached $2 billion;
- Tron grew by 18%, TVL reached $5.3 billion;
- BNB Chain grew by 18%, TVL reached $7.1 billion.
Lido Finance was the largest DeFi protocol at the end of January. The TVL of a liquid staking service reached $8 billion during the month, 37% more than at the end of 2022. DappRadar analysts say the protocol growth is primarily due to the increasing popularity of Liquid Staking Derivative (LSD). Lido Finance tools allow users to access liquid Ethereum derivatives by staking any amount of ETH.
According to the report, the NFT market also showed growth in January 2023. The NFT trading volume hit $946 million, a 38% increase compared to the previous month. It’s also the highest trading volume recorded since June 2022. The number of NFT sales reached 9.2 million, nearly double the number at the end of 2022.
The NFT trading volume on various blockchain networks in January 2023:
- Avalanche grew by 451% to $1.7 million;
- Tezos grew by 150% to $1.7 million;
- Polygon grew by 124% to $46 million;
- Ronin grew by 83% to $3.4 million;
- BNB Chain grew by 52% to $4.1 million;
- Ethereum grew by 37% to $659 million;
- Theta grew by 29% to $4.8 million;
- Solana grew by 23% to $85 million;
- Flow grew by 14% to $7.7 million;
- IMX dropped by 3% to $14.2 million;
- WAX dropped by 32% to $1.7 million.
Recall that the NFT market experienced many ups and downs in 2022. However, despite all of last year’s setbacks, analysts predict the NFT market could grow to $97.6 billion by 2028.
