Avalon Labs Surpasses $1 Billion in TVL as Bitcoin Reaches New Highs
Avalon Labs has surpassed $1 billion in total value locked, coinciding with Bitcoin reaching $75,000. The platform has grown by 25% over the past week, driven by increased token deposits and a rise in Bitcoin’s price. Avalon offers various lending and yield products, emphasizing CeDeFi solutions. The flagship DeFi lending platform has seen notable growth, primarily facilitated by Wrapped Bitcoin deposits.
Avalon Labs, known for its yield farming and lending solutions tailored for Bitcoin-related tokens, has achieved a significant milestone by surpassing $1 billion in total value locked (TVL). This notable achievement coincided with Bitcoin’s surge to an unprecedented $75,000, all following Donald Trump’s electoral victory. As reported by DefiLlama, Avalon Labs experienced a more than 25% increase in its liquidity over the past week, reaching a new high of approximately $1.1 billion. Initially reported in mid-September, Avalon had a TVL of $440 million. The platform’s rapid growth can be attributed to a rebound in token deposits and Bitcoin’s price increase of 5% on November 6. Avalon Labs has effectively positioned itself as a crucial liquidity hub for Bitcoin-based decentralized finance (DeFi), providing various lending and yield-generating products across multiple blockchain networks. Founded in April 2024, Avalon Labs transitioned from being known as Avalon Finance and subsequently introduced the first Centralized-Decentralized Finance (CeDeFi) platform. The CeDeFi model merges the regulatory compliance of traditional finance with the operational efficiency of blockchain technology. Launched in August, this product focuses heavily on Bitcoin-related tokens. Additionally, users can participate in the FBTC/USDT pool, which yields a stable rate of 8% with flexible repayment options. Notably, the CeDeFi product has grown from $80 million to an impressive $220 million in TVL in a short period, with record deposits of $45 million recorded on November 5. The flagship DeFi lending service of Avalon Labs holds nearly $795 million in TVL, marking a substantial increase from approximately $500 million in mid-September. As a DeFi lending protocol derived from Aave v3, Avalon Finance has expanded its compatibility to include 13 blockchain ecosystems such as BitLayer, Merlin, BNB Smart Chain (BSC), IoTeX, Core, Arbitrum, Bob, Ethereum, Base, Scroll, BSquare, and Taiko. Among these, BitLayer leads the market with over $290 million in token value, followed closely by Core and BSC, the latter experiencing a meteoric rise in TVL, increasing from $2 million to nearly $180 million in October. Wrapped Bitcoin (WBTC) is currently the most prevalent asset deposited on the Avalon Finance platform, representing approximately one-third of its total value locked.
The recent surge in the total value locked (TVL) in Avalon Labs can be attributed to the broader market dynamics surrounding Bitcoin as it aims for a new pinnacle price. The interplay of political events and cryptocurrency market trends often affects investor sentiment and liquidity flow, leading to significant variations in the values held within such platforms. Avalon Labs, as a yield farming and lending protocol, leverages these market movements to attract users seeking to capitalize on the rising Bitcoin prices and innovative financial products, positioning itself as a notable player in the DeFi landscape.
In summary, Avalon Labs has successfully crossed the $1 billion threshold in TVL, propelled by Bitcoin’s record pricing and strategic product offerings within the CeDeFi domain. The substantial growth over recent weeks reflects both an increase in user engagement and confidence in the platform’s capabilities. As it stands, Avalon Labs is prominent in the Bitcoin LSDFi ecosystem, demonstrating resilience and efficacy in its services through a rapidly evolving cryptocurrency market.
Original Source: www.nftgators.com
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