Top Crypto Companies by Total Value Locked (TVL)
In the world of decentralized finance (DeFi), Total Value Locked (TVL) is a crucial metric that measures the money deposited in a crypto protocol by its users. A high TVL indicates a popular and trusted project, while a decline in TVL could signal trouble. To get a comprehensive analysis of DeFi projects, investors often combine TVL with other key metrics like daily active users, revenues/fees, market cap, and token price.
One of the best ways to identify promising crypto companies is to look at their TVL. Not all projects have TVL, only those that allow users to store money in the protocol in exchange for rewards. This could include lending protocols, liquidity pools, collateralized loans, and yield farming projects.
Here are the top five blockchain projects ranked by TVL as of Q2 2024:
Lido Finance
– TVL: $36.21 billion
– Launch Year: 2020
– Segment: Liquid staking
– Lido Finance is a DeFi platform that offers liquid staking solutions for crypto users. It connects individual stakers with Proof-of-Stake blockchains like Ethereum, Solana, and Polkadot. The majority of Lido’s TVL comes from ETH staked by users, which has seen significant growth in recent months.
EigenLayer
– TVL: $19.23 billion
– Launch Year: 2023
– Segment: ETH restaking
– EigenLayer is a new project that allows ETH stakers to restake their assets for additional income streams. It has quickly become the second-largest protocol in terms of TVL, attracting interest from ETH holders looking for passive rewards.
Aave
– TVL: $12.84 billion
– Launch Year: 2017
– Segment: DeFi lending
– Aave is a peer-to-peer lending platform on the blockchain where users can earn interest income by adding funds to liquidity pools. The platform has seen a significant increase in net deposits, doubling from $8 billion to $20 billion in the last year.
Arbitrum Bridge
– TVL: $11.92 billion
– Launch Year: 2021
– Segment: ETH Layer 2 scaling
– Arbitrum Bridge is a Layer 2 scaling solution for Ethereum that allows users to transfer assets securely and affordably. The platform has seen a doubling of TVL in 2024, driven by positive sentiment in the cryptocurrency markets.
Maker DAO
– TVL: $6.48 billion
– Launch Year: 2014
– Segment: Crypto lending
– Maker DAO combines a lending platform with a stablecoin called DAI, allowing borrowers to deposit collateral and receive loans. The project has remained stable and popular, positioning itself in the top 5 in terms of TVL.
Investors looking to evaluate DeFi projects should consider the TVL metric alongside other key indicators to make informed decisions about their investments. By understanding the total value locked in a project, investors can gauge its reliability, popularity, and long-term viability in the ever-evolving crypto market.
