Polkadot's Total Value Locked (TVL) Has Surged by 1000% in Last 30 Days

  • DeFi Llama accounts for Polkadot’s overall TVL.
  • Polkadot’s sudden rise can’t be explained by the movement of TVL projects.

Over the previous 30 days, Polkadot’s ($DOT) total value locked has increased by more than 1,000 percent according to DeFiLlama. However, a closer look at the data shows that this seems to result from just one real increase in TVL.

Most of March remained stationary for Polkadot (this does not include the parachains that also boost the L1’s TVL and what truly holds most of it). However, the TVL surged from March 28th to March 29th, raising the chain’s TVL from $400k to nearly $4 million. With the launch of more parachains, Polkadot’s price action has been excellent this month. Despite a drop today, the L1 is still rated 11th and has gained almost 15% in the last month.

Few Performing Well Over Others

Let’s clarify a few misunderstandings about how DeFiLlama accounts for Polkadot’s overall TVL. Statistically, specific projects (particularly parachains) are listed individually, with the overall value locked by adding them all together. DeFiLlama is a barrier between Polkadot and the DOT parachain projects it supports.

Specific parachain projects like Astar have been performing incredibly well over the last month, while other projects like Moonbeam have been down. So Polkadot’s sudden rise can’t be explained by the movement of TVL projects.

Genshiro, a DeFi Platform and not a parachain, for example, has around 3.71M in TVL. Genshiro was constructed on Kusama (Polkadot’s “test” chain), and presumably — while not verified — Genshiro may now be shifting to Polkadot, which might explain why the TVL is up. However, it is challenging for DeFi Llama to obtain data on TVL from projects; thus, either Genshiro has moved to Polkadot, or DeFi Llama is now accounting for TVL already in place Polkadot but was missed by the previous system.

The post has appeared first on thenewscrypto.com

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