Optimism total value locked (TVL) soared in July due to a spike in liquidity poured into decentralized finance (DeFi) by investors.
Optimism was one of the best-performing protocols in July and saw a 90% increase in TVL from around $274.46 million on July 1 to approximately $543.09 million on July 31, according to data from DefiLlama.
New to Optimism?
Optimism is a Layer 2 Optimistic Rollup network designed to utilize the strong security guarantees of Ethereum while reducing its cost and latency.
Like other protocols, it has a native asset that oversees activities in its ecosystem, and it is called OP.
What contributed to the rise in TVL?
TVL was up in July due to a spike in the liquidity poured into decentralized protocols or applications (dApps) housed in its ecosystem.
Decentralized lending platform Aave (which has the most TVL in Optimism) rose by more than 3,000% in the last month.
While decentralized service platform Pool Together increased by more than 1,000% within the same period.
And decentralized exchanges (DEXs) Uniswap and Curve Finance were up by over 15% and 90% respectively.
Other dApps that made significant contributions to TVL include Synthetix, Velodrome, Stargate, and Perpetual Protocol.
The latest statistic has seen Optimism move into the top 10 chains with the most value locked behind Arbitrum, Cronos, Solana, Avalanche, Polygon, Binance Smart Chain, TRON, and Ethereum.
OP opened on July 1, with a trading price of $0.5439, reached a monthly high of $1.91, tested a monthly low of $0.4147, and closed the month at $1.59.
Overall, this equates to a 90% increase between the opening and closing price of OP in July.
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