Iotx Coin News: Here’s How TVL by blockchain Will Increase15 Folds on it by 2022?

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Now ranked 22 on DeFi Llama, IoTeX’s total value locked (TVL) by users has increased nearly 15-fold since the start of this year, signaling the significant interest and trust crypto holders have in the leading multi-chain platform.

At the start of the year, TVL on the IoTeX network was about $22 million. Today, the number has skyrocketed to over $300 million. The TVL growth has sent IoTeX quickly rising through the ranks to 22nd place, according to DeFi Llama.

IoTeX is now ranking above Mixin, Kusama, Fusion, Neo, Nervos, Gnosis, Theta, Tezos, Cardano, EOS, Wanchain, and 57 more as DeFi Llama lists 79 projects.

“DeFi activity on IoTeX is growing very fast. A lot of the growth comes from our user-friendly infrastructure and lightning-fast blockchain, as well as new communities that are interested in our GameFi and MachineFi ecosystem projects,” said Larry Pang, IoTeX Head of Business Development. “People are increasingly trusting IoTeX to manage large amounts of value.”

Pang said that one “reason why people may be bringing their tokens over to IoTeX is that on our platform transaction fees are a fraction of a cent and transaction speeds are down to seconds, when on Ethereum, for example, it takes up to five minutes.”

IoTube is the cross-chain that allows tokens from Ethereum, Binance Smart Chain, and Polygon to be bridged seamlessly over to IoTeX, Pang explained.

“With the growing number of DeFi apps on IoTeX, such as FilDA, Minmax, Mimo, and Xdollar, the decentralized finance community now sees IoTeX as a promising option to manage their funds,” Pang said. He said that the combined TVL and staked IOTX tokens on the IoTeX platform come to an equivalent of over $500 million.

For IoTeX, the top three DeFi projects contributing to the TVL are FilDA, IoTube, and Mimo ($27 million). Ethereum still largely dominates the TVL on all chains with 60% of the total value of $119 billion, and the total value locked on all chains is approximately $195 billion.

TVL Briefly Explained

Total value locked (TVL) is the most popular metric for DeFi, and it represents the total amount of digital assets “locked” in DeFi application smart contracts. Locked in TVL means assets are not necessarily committed for any specific time but secured in DeFi application smart contacts.

The TVL metric is vital in identifying how much capital is used across the DeFi ecosystem. It has become a key metric for measuring interest in the industry of cryptocurrency.

In an educational piece on TVL and DeFi, Coindesk said that “Investors can look at TVL when they want to find out whether the native token of a DeFi project is valued appropriately. Token’s market cap can be low or high related to TVL of the project, as more extreme the relationship is, the more undervalued or overvalued the token can appear.”

In early January 2022, Cointelegraph wrote an article predicting that DeFi’s TVL is on “the verge of a new ATH (all-time high).”

“In the start of 2022, the DeFi sector of the crypto industry appears to be developing unlike in early 2021,” The news outlet said this was evidence that momentum is building in the DeFi space.

Cointelegraph quoted data from Dune Analytics which shows that the number of unique DeFi users has continued to grow and is currently at a record high of more than 4.3 million unique wallets.

 

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