Stellar's Decentralized Finance (DeFi) Total Value Locked hits a new high of $61 million, coinciding with XLM's dramatic 400% price increase.

Stellar's Decentralized Finance (DeFi) Total Value Locked hits a new high of $61 million, coinciding with XLM's dramatic 400% price increase.

Stellar, a blockchain platform known for its fast and affordable transactions, is experiencing a surge in the Total Value Locked (TVL) within its dApps. In the past week alone, Aquarius Stellar, one of the fastest-growing DEX apps on Stellar, has seen its TVL grow by over 240% to a record $8.4 million.

This growth is not limited to Aquarius Stellar. Other fast-growing DEXs on Stellar include Scopuly, Soroswap, and LumenSwap, which currently holds the largest DEX position with a record $23 million in TVL. LumenSwap's daily trading volume has also soared to a record $27 million after maintaining below $1 million for multiple months.

Blend, Stellar's lending dApp, currently has a record $12.8 million in TVL. Notably, XLM, Stellar's native cryptocurrency, has surged by over 400% since the beginning of November, reaching over $0.5, a level not seen since May 2021.

The growth in Stellar's TVL and improved performance of its dApps can be attributed to several factors. The expansion of the DeFi ecosystem and smart contract capabilities, enabled by Soroban, Stellar’s custom-built smart contract platform, has allowed for more complex DeFi functionalities. This includes tokenized real-world assets, decentralized trading, lending, and pooling options, attracting capital and users to the network.

Institutional adoption and tokenization of traditional financial products have also played a significant role. Large institutional players such as Franklin Templeton have tokenized treasury products on Stellar, providing regulated and familiar investment vehicles accessible via blockchain rails. Stablecoins, particularly Circle’s USDC, have also expanded significantly on Stellar as a medium of exchange for both on-chain transactions and remittances. Partnerships with payment giants like PayPal and Mastercard are facilitating real-world crypto adoption via Stellar.

Stellar's ability to offer fast and affordable transactions has attracted a wider user base, reflected in a 14% surge in transactions, an 81% increase in active addresses to over 515,000, and a 120% jump in network fees, signaling higher engagement.

Interoperability and asset bridging are also key factors. Stellar’s anchor model and focus on interoperability enable seamless tokenization and transfer of fiat and crypto assets across different blockchains. This makes Stellar a pivotal bridge between traditional finance and decentralized finance, enhancing liquidity and on-chain activity.

Upcoming protocol upgrades like Protocol 23, due late August 2025, are expected to enhance smart contract efficiency and scalability, further driving optimism and usage of Stellar’s DeFi and dApp ecosystem.

Positive technical charts and rising price targets indicate increasing investor confidence, supporting the ecosystem’s growth and dApp performance. The recent resignation of Gary Gensler, who served as chief of the US Securities and Exchanges Commission (SEC), is hoped to end the regulator's litigation against Ripple, which may further boost Stellar's growth.

As of November 24, 2022, Stellar's total value locked (TVL) in supported dApps reached a record $61 million. This TVL represents a more than 150% increase from the previous record established in mid-November at $24 million. XLM accounts for about 94% of Blend deposits in USD terms, further underscoring the growing importance of Stellar within the DeFi landscape.

The surge in Aquarius Stellar's TVL and the soaring daily trading volume of LumenSwap indicate a best news for those who follow Stellar finance. As more dApps like Scopuly, Soroswap, and LumenSwap experience growth, the total value locked in Stellar's dApps continues to increase, reaching a daily news high of $61 million. With the best smart contract capabilities enabled by Soroban, the expansion of the DeFi ecosystem and interoperability are attracting capital and users to the network.

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