In January, the volume of blockchain in smart decentralized applications (TVL) grew by 25%, reaching $73.95 billion.
The momentum is partly due to the growth of cryptocurrency prices. However, investor sentiment also played an important role, with investors increasingly choosing DeFi projects as an alternative to centralized platforms.
The TVL of the Ethereum network grew by almost 20% during the reporting period. The ecosystem continues to hold the largest share of the segment’s aggregate index – at the end of the month, its dominance index is estimated at 35%.
Other blockchains from TVL’s top six also managed to strengthen their positions. For example, BNB chain grew by 12% and Tron – by 17%.
Arbitrum showed the best dynamics (+25%), which is related to the growing popularity of L2 solutions. According to Dune Analytics, in January, Arbitrum together with Optimism processed more transactions on average than the main Ethereum network.
