Algorand's ecosystem drives Folks Finance to achieve an all-time high TVL of $255 million, marking a significant milestone.
Folks Finance, a cross-chain lending platform, has made significant strides in the Algorand DeFi ecosystem. The platform's Algorand-related products, including Folks Finance Lending, gALGO Liquid Governance, and xALGO Liquid Staking, have shown notable recent developments and strong performance, contributing to Algorand's DeFi ecosystem growth.
Folks Finance Lending protocol is actively driving significant DeFi activity on Algorand. The protocol has entered strategic partnerships with Cryptecon for economic model reviews, safety margin analysis, utilization optimization, and protocol audits performed by Runtime Verification Inc and other auditors. This collaboration aims to optimize security and economic soundness for the protocol, with research papers and further updates forthcoming.
Algorand’s DeFi Total Value Locked (TVL) grew dramatically by 216% quarter-over-quarter to $417 million as of Q4 2024, largely fueled by increased activity on Folks Finance, as well as other platforms like Tinyman and Lofty. Folks Finance’s involvement in robust liquid staking products and Real World Asset (RWA) tokenization was a key contributor to this growth.
Growth indicators from mid-2025 show that Folks Finance and other major protocols fueled a 23% TVL increase in a single day to $121.85 million. Key usage metrics like daily transaction volume (5.8 million), active addresses (+22%), and USDC inflow ($120 million) also rose, highlighting renewed interest in Algorand DeFi, much of which is driven by Folks Finance products.
gALGO Liquid Governance and xALGO Liquid Staking, as parts of Folks Finance’s ecosystem, contribute to Algorand’s liquid staking and governance capabilities, improving capital efficiency and governance participation. These products bolster the network's staking utility and support Algorand’s DeFi expansion.
Folks Finance was featured as a key partner in Algorand ecosystem discussions at recent events like AlgoCan[nes] 2025. The event highlighted advances in interoperability, AI-driven finance, and blockchain privacy technologies, with Folks Finance mentioned as a collaborator helping shape practical decentralized finance applications on Algorand.
In addition to its Algorand-based products, Folks Finance also offers a cross-chain lending application called xChain. xChain supports Avalanche, Ethereum, BNB Smart Chain, Base, Arbitrum, and leverages Wormhole bridge, Chainlink's CCIP, and Circle's CCTP.
The three most deposited tokens on Folks Finance are ALGO with $52 million, gALGO with $48 million, and USDC with nearly $10 million in deposits. Folks Finance Lending's TVL rose from $28 million at the beginning of the month to the current record level of $86 million.
Folks Finance itself reports over $257 million in TVL, making it a significant player in the Algorand DeFi landscape. The platform's recent successes and strategic partnerships suggest a promising future for its role as a foundational Algorand DeFi platform.
- The strategic partnerships between Folks Finance and entities such as Cryptecon and audit firms like Runtime Verification Inc are aimed at optimizing security and economic soundness for the Folks Finance Lending protocol, with ongoing research and updates expected.
- The growth in Algorand's DeFi Total Value Locked (TVL) can be attributed in part to the increased activity on Folks Finance, as well as other platforms, with Folks Finance's involvement in robust liquid staking products and Real World Asset (RWA) tokenization being a key factor in this growth.
