According to DeFi Llama, money has started to flow again from traditional cryptocurrencies to decentralized financial markets.
Avalanche appears to be at the forefront as interest in cryptocurrency lending, staking and other decentralized financial solutions is growing again.
While Avalanche's locked-in value exceeds $11 billion, it's just under $13 billion in BNB.
TVL Protected By AVAX
When we look at AVAX's competitors in terms of the locked-in amount collected inside, we see a monthly decrease as a function of market sentiment.
Thus, Ethereum ranks first with a total blocked value of $124 billion, followed by Luna with $16 billion and BNB with $13 billion.
AVAX, which retreated to $53 levels during Bitcoin’s crash, has again approached the $100 threshold with the recent surge. That means there was an 83% increase in 25 days.
What's Avalanche?
Avalanche launched in 2020 as a platform for smart contracts, the creation of decentralized applications, or dapps, and subnets, or custom blockchains.
"Subnets are powerful, reliable and secure private or public blockchains built as offshoots to the core Avalanche platform," John Wu, president of Ava Labs, tells CNBC Make It. "Developers of these custom blockchains have complete control over the design, with the only requirement being to participate in securing the core platform."
Avalanche operates on a proof of stake (PoS) model, where validators verify transactions according to how many coins they hold. Supporters of PoS say it is significantly less energy intensive than other models and has less of an environmental impact.