Ethereum and Solana Experience Growth in TVL, Unveiling Deeper Insights

Ethereum Leads the TVL Charge

Ethereum made significant gains in Total Value Locked (TVL) over the past week, adding $2.46 billion to its holdings, marking a 5.25% increase. This growth was primarily driven by the participation of leading decentralized finance (DeFi) protocols such as Aave and Convex Finance.

Aave and Ondo Finance Boost Ethereum’s TVL

Lending protocol Aave experienced a capital increase of nearly $63 million in its V3 protocol, with a growth rate of 3.5%. Over a longer period, TVL on Aave’s third version saw a remarkable 13% increase from the previous month. This growth can be attributed to the migration of liquidity from earlier versions to the latest one.

Additionally, the real-world assets (RWA) protocol, Ondo Finance, contributed to Ethereum’s TVL by accumulating $33.4 million over the past week, further reinforcing the bullish sentiment around RWAs.

Solana’s Gains with Liquid Staking

Solana, another popular blockchain for DeFi operations, also experienced notable gains during the week. Solana’s liquid staking protocol attracted more than $7 million worth of SOL coins, indicating growing interest in the platform.

Lido Finance, a prominent player in the Solana ecosystem, saw inflows of approximately $3.3 million, highlighting the significant role of liquid staking in powering Solana’s DeFi ecosystem.

Base Struggles to Gain Traction

While established DeFi networks like Ethereum and Solana thrived, the recently-launched layer-2 chain, Base, faced challenges in gaining traction. Base witnessed meager TVL growth, with an increase of just 0.04% over the past week. This comes after Base lost $27 million in liquidity the previous week.

According to 0xScope, Base entered a “bottleneck” period following its growth wave in August, indicating a need for further development and adoption to compete with established DeFi ecosystems.

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