Spark, a MakerDAO subDAO, is thriving as DeFi TVL hits $3.2 billion

February 22, 2024 10:31 PM AEDT | By Invezz

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Spark, a MakerDAO subDAO, is thriving as DeFi TVL hits $3.2 billion — Image source: Invezz

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SparkLend, the biggest SubDAO in MakerDAO’s ecosystem is booming as inflows continue rising amid the ongoing crypto bull run.

Data compiled by DeFi Llama shows that the DeFi total value locked (TVL) in the ecosystem has surged to a record high of over $3.26 billion. This is a remarkable rally considering that it stood at less than $60 million in August last year.

There is a likelihood that the TVL in this ecosystem will continue rising now that we are in a major crypto bull run. Bitcoin has already surged above $50k while Ethereum has moved above $3,000. In a statement, Sam MacPherson, the CEO and founder of Spark said:

“Spark reaching more than $4.5BN in supply and growth beyond $3.2BN in TVL is testament to the surging demand for crypto leverage as the bull market heats up. Predictable, low rates are why users come to Spark first for their leverage needs, as proven by +79.75% growth in TVL MoM.”

For starters, Spark is a leading player in the Decentralised Finance (DeFi) industry. It is a subDAO in the MakerDAO ecosystem that makes it possible for people to deposit and borrow cryptocurrencies.

Users in the ecosystem can deposit the volatile ETH token and borrow Dai, the third-biggest stablecoin in the world.

Spark’s growth is part of the ongoing DeFi resurgence as cryptocurrencies jump. Data shows that the TVL in the DeFi ecosystem has jumped to over $123 billion while the market cap of all stablecoins in DeFi has soared to $138 billion.

MakerDAO is an essential part of the DeFi industry since it is the second-biggest player with over $8.7 billion in assets.

Analysts expect that the industry will continue doing well if the crypto boom continues. In a statement on Wednesday, Tom Lee, the founder of Fundstrat predicted that Bitcoin will surge to $150,000 in the next few months in a move that could lead to more gains in the industry.

The post Spark, a MakerDAO subDAO, is thriving as DeFi TVL hits $3.2 billion appeared first on Invezz

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