Avalanche TVL Reaches $1.74B: Top 10 Projects Leading the Way

Avalanche TVL Reaches $1.74B: Top 10 Projects Leading the Way
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Total Value Locked (TVL) and Avalanche’s Growth

Total Value Locked (TVL) is a crucial metric that demonstrates the growth and adoption levels within the DeFi sector. TVL represents the total value of assets locked in various blockchain-based platforms. On Avalanche, TVL continues to rise, with billions being invested across several key sectors including lending, decentralized exchanges (DEXs), derivatives platforms, and real-world asset (RWA) tokenization.

The impressive $1.74 billion in TVL on Avalanche showcases the expanding ecosystem and increasing investor interest in decentralized finance applications.

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

Lending activity forms the foundation of Avalanche’s DeFi ecosystem. Two platforms, AAVE and QI (Benqi Lending), dominate the lending space with over $1 billion in TVL. Together, they control more than half of Avalanche’s TVL, reflecting the importance of lending services within the network.

  • AAVE: With a 36.41% market share, AAVE controls $563 million in TVL. Known for its decentralized lending services, AAVE has become a core component of Avalanche’s financial base.
  • QI (Benqi Lending): QI follows closely with $520.64 million in TVL, representing 33.67% of Avalanche’s total value. Its expertise in algorithmic lending solutions and autonomous liquidity management capabilities has attracted many users looking to borrow assets on-chain.

These two platforms are instrumental in driving the growth of Avalanche’s lending sector, solidifying the blockchain’s position as a major player in the DeFi space.

Decentralized Exchanges (DEXs) Making Waves: JOE and PHAR

Decentralized exchanges (DEXs) have been key to the development of Avalanche’s DeFi ecosystem. Two platforms, Joe (JOE) and Pharaoh (PHAR), have been pivotal in supporting decentralized trading activities on the network.

  • Joe (JOE): As the leading DEX on Avalanche, Joe holds a total value locked (TVL) of $146.32 million. The platform provides users with token swaps, yield farming, and staking options, making it a central hub for DeFi activities.
  • Pharaoh (PHAR): PHAR is a secondary DEX with $44.62 million in TVL. Known for its advanced trading features and liquidity pool approaches, PHAR offers traders a unique platform to engage with decentralized finance.

The success of JOE and PHAR demonstrates the growing importance of decentralized exchanges within the Avalanche network, catering to a wide range of users seeking liquidity and trading opportunities.

Derivatives and Liquid Staking: GMX and GGP Gain Traction

Avalanche’s derivatives and liquid staking markets are seeing exponential growth. Two platforms, GMX and GGP, have emerged as leaders in their respective sectors, attracting professional traders and investors alike.

  • GMX: A leading decentralized derivatives trading platform, GMX has achieved $85.11 million in TVL. Known for its deep order book liquidity and decentralized leverage access, GMX provides perpetual futures trading to a growing user base.
  • GGP (Liquid Staking): GGP has captured $48.01 million in TVL, solidifying its position as a top player in the liquid staking space. Liquid staking allows users to earn rewards while maintaining liquidity, further driving interest in Avalanche’s ecosystem.

Both GMX and GGP are expanding the use cases for Avalanche, especially in advanced financial products like derivatives and liquid staking.

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

The tokenization of real-world assets (RWA) is rapidly gaining traction on Avalanche. Several projects are bridging the gap between traditional financial assets and blockchain technology, drawing institutional investors to the network.

  • BUIDL: Supported by BlackRock, BUIDL has secured $54.44 million in TVL to tokenize traditional financial assets on the Avalanche blockchain.
  • FT: The RWA-focused FT project has garnered $30.25 million in TVL, reflecting the growing market interest in tokenizing real-world assets.
  • NOTE: With $21.25 million in TVL, NOTE continues to make strides in the RWA space, offering a platform for asset tokenization and investment.
  • Yield Yak (YAK): In the yield farming sector, Yield Yak has become a major player, securing $32.55 million in TVL. Its automated features make it a top choice for passive income-seeking investors.

These projects are driving Avalanche’s expansion into traditional finance sectors and helping to bridge the gap between legacy financial systems and decentralized networks.

Conclusion: Avalanche’s Ecosystem Continues to Expand

The Avalanche blockchain’s $1.74 billion in Total Value Locked underscores the growing strength of its DeFi ecosystem. The growth in lending, decentralized exchanges, derivatives, liquid staking, real-world assets, and yield farming reflects the diverse opportunities available to investors and users. As the ecosystem continues to expand, Avalanche is positioning itself as a leading hub for decentralized finance, attracting both institutional players like BlackRock and innovative DeFi protocols.

As Avalanche’s ecosystem continues to evolve, its ability to integrate new solutions and attract liquidity will be critical to maintaining its momentum in the competitive DeFi landscape.