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AVAX is again in the news as the value of the cryptocurrency locked exceeds $11 Billion. This increase is because the market has turned its attention away from traditional cryptos to DeFi (Decentralized Financial) solutions such as farming, crypto lending, and so on.
Report From DeFi Llama
The tracking service DeFi Llama stated that the value of AVAX locked has exceeded $11 Billion as a huge percentage of the allocated funds remain in the AAVE protocol. The AAVE protocol allows users to offer lending services to other members.
AAVE is an open-source protocol where users earn interest on their deposits and also borrow digital currencies
Presently, the overall TVL (Total Value Locked) in the AAVE protocol is about $13.5 billion and has witnessed a rise of over $1 billion since the 7th of February. Although there is a huge amount of funds in the protocol’s contract, it is not close to its highest record of $19 billion. The difference is about $6 billion.
The trader, Joe protocol, sits at the second position on the AVAX network. Joe protocol, which is decentralized, holds a Total Locked Value of $1.5 billion.
Total Locked Value of Competitors
Ethereum, a competitor to the AVAX network, sits at the first position with over $127 billion of ETH locked in different smart contracts. The second position is Terra (LUNA), with approximately $16 billion, while at the fifth position is Fantom (FTM), with $8.57 billion.
The closest competitor to Avalanche is BNB, which has a Total Value Locked of about $13 billion. Unfortunately, the BNB network has a monthly loss of about 10% in the funds Locked away, which is higher compared to that of Avalanche.
Such a high percentage loss could result from a shift in the market’s attention. In the coming months, the percentage loss could be lower.
AVAX, released in 2020, is the native crypto of the Avalanche platform. The platform has high transaction speed and low pricing fees. Unlike Bitcoin, which was created using a proof of work algorithm, AVAX is produced utilizing a stake algorithm that uses less energy and is more secure.
The platform’s objective is to develop a scalable blockchain that is flexible and maintains security. This is why many investors are purchasing cryptocurrency.
As of this report, Avalanche is trading at $93.16, with an increase of 5.10% in the past 24 hours. Also, the market cap is at $22 billion, as reported from CoinMarketCap.