Polkadot had a recent surge in TVL. Why the sudden spike? Covered: Polkadot’s TVL Is Up Over 1000% This Past Month Here’s Why Polkadot’s TVL Is Up Over 1000% This Past Month At the time of writing, Polkadot’s ($DOT) total value locked is up over 1000 % in the last 30 days (according to DeFi […] The post Polkadot’s TVL is Up Over 1000% This Month — Here’s Why appeared first on CryptosRus.

Polkadot’s TVL is Up Over 1000% This Month — Here’s Why

Polkadot had a recent surge in TVL. Why the sudden spike?

Covered:

  • Polkadot’s TVL Is Up Over 1000% This Past Month
  • Here’s Why

Polkadot’s TVL Is Up Over 1000% This Past Month

At the time of writing, Polkadot’s ($DOT) total value locked is up over 1000 % in the last 30 days (according to DeFi Llama). However, when inspecting the data more thoroughly, it seems like there was only one true spike in TVL that caused this.

As seen below, most of March was stagnant for Polkadot (this does not include the parachains that also contribute to the L1’s TVL and what actually holds most of it). But, from March 28th to March 29th, there was a huge spike in TVL, bringing the chain from approximately $400 k to over $4 million in TVL.

(Data from DeFi Llama)

Polkadot’s price action has been great this month as well, as more parachains are beginning to go live. Although down today, the L1 still sits ranked at number 11 and is up over 15 percent over the past month.

Here’s Why

In order to understand why its TVL spiked, it’s important to look at different DeFi protocols and DEXs that are potentially adding to TVL. First, let’s clear up some things on how DeFi Llama actually accounts for Polkadot’s total TVL. They list some projects (specifically parachains) separately for the stats, and they add them together to get the true total value locked. In other words, DeFi llama separates DOT parachain projects from Polkadot itself.

Certain parachain projects like Astar have been doing really well over the past month, and other projects like Moonbeam have been down. But those projects movements in TVL can’t explain the sudden spike for Polkadot.

That being said, we can see that the project Genshiro (which is a DeFi Platform and not a parachain), has about 3.71 m in TVL. Genshiro was built on Kusama (Polkadot’s “test” chain), and presumably — although not confirmed — Genshiro may now be moving to Polkadot, and that could explain why the TVL is up. However, it is extremely hard for DeFi Llama to gather data on TVL from projects, so this is probably either Genshiro moving from Kusama to Polkadot, or DeFi Llama is now accounting for TVL that was already on Polkadot but went undetected.

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