Avalanche TVL Hits $1.74B: Top 10 Projects Dominating the Ecosystem

The Total Value Locked on Avalanche blockchain passed $1.74 billion, marking a major network advancement. The industry momentum of decentralized finance (DeFi) further verifies the Avalanche network’s expanding authority.

TOP 10 #TVL ON #AVALANCHE
$AAVE $QI $JOE $GMX #BUIDL $GGP $PHAR $YAK #FranklinTempleton $NOTE pic.twitter.com/UpaaJqmOzT

— PHOENIX – Crypto News & Analytics (@pnxgrp) January 29, 2025

Total Value Locked (TVL) represents a crucial metric which demonstrates both DeFi sector growth and adoption levels. The various blockchain ecosystems see several projects, including lending protocols. Decentralized exchanges, derivatives platforms, RWA, and tokenization platforms are drawing billions in investment.

Lending Giants: AAVE and QI Lead with Over $1 Billion in TVL

The lending activity forms the foundation of Avalanche’s DeFi ecosystem because AAVE, together with QI dominates TVL rankings with over $1 billion. The market leader AAVE controls a 36.41% share, with its total value reaching $563 million. AAVE provides decentralized lending services that establish the platform as a core component of Avalanche’s financial base.

Currently, QI (Benqi Lending) stands at $520.64 million, which makes up 33.67% of Avalanche’s TVL. Users who want to borrow assets on-chain prefer QI because of its expertise in algorithmic lending solutions and autonomous liquidity management capabilities. Together, these two platforms control more than $1 billion worth of funds, which demonstrates the lending sector’s dominance within Avalanche’s financial operations.

Decentralized Exchanges (DEXs) Making Waves: JOE and PHAR

The foundation on which Avalanche’s thriving DEX sector stands was built by Joe (JOE) and Pharaoh (PHAR). The Avalanche blockchain’s leading decentralized exchange, Joe holds a total value locked of $146.32 million. Through its platform, users access various DeFi capabilities that combine token swaps with yield farming features and staking options.

PHAR stands out as a leading secondary DEX with $44.62 million in TVL through its advanced trading features and liquidity pool approaches.

Derivatives and Liquid Staking: GMX and GGP Gain Traction

The Avalanche network sees exponential growth in its derivatives and liquid staking marketplaces. GMX, a leading decentralized derivatives trading platform, holds $85.11 million in TVL. Professional traders choose GMX perpetual futures trading because it mixes deep order book liquidity with decentralized leverage access. The liquid staking space leader GGP achieved $48.01 million in TVL dominance.

Real-World Assets (RWA) and Yield Farming: BUIDL, FT, NOTE, and YAK

Real-world asset (RWA) tokenization experiences rapid growth as institutional investors actively join Avalanche’s ecosystem. The BUIDL project, which receives support from BlackRock, controls $54.44 million in TVL to tokenize traditional financial assets through its blockchain infrastructure.

The Real-World Assets (RWA), FT, has secured $30.25 million in TVL investments, showing the expanding market interest between traditional financial systems and blockchain operations.

The RWA-focused project NOTE continues to gain traction within the industry as it secures $21.25 million along with other progressive token-oriented initiatives. The yield farming sector contains Yield Yak (YAK) as an essential component after it got $32.55 million in total value locked (TVL). The automated features of Yield Yak make it the top DeFi investment instrument for passive income-seeking investors.

Conclusion: Avalanche’s Ecosystem Continues to Expand

The $1.74 billion total value locked at Avalanche demonstrates the thriving network dynamics in its various DeFi sectors. Current DeFi growth originates from multiple sectors such as lending, which remains dominant, but decentralized exchanges alongside derivatives, liquid staking real-world assets, and yield farming support the expansion.

Avalanche establishes its position as a leading decentralized finance hub as BlackRock and FK move into the space while DeFi protocols develop new solutions.

Source