TVL Swell Doubled in Just 1 Month

TVL Swell doubled in just 1 month

Swell, the liquid staking protocol that is attracting a lot of attention, has officially surpassed the 108,000 ETH (245 million USD) total value locked (TVL) mark. This number has doubled compared to the achievement of a month ago.

TVL Swell statistics from November 2023 to present. Source: Defi LIama

The growth that started this December has made Swell the 4th largest liquid staking protocol in the crypto market. Protocols that outperform Swell are Lido Finance (9 million ETH), Rocket Pool (846,000 ETH) and Frax Finance (236,000 ETH), according to Dune data compiled by Dragonfly analyst Hildobby.

This milestone coincides with Swell’s announcement of the “Pearl” reward system for liquid staking products, as competition in the airdrop race is becoming increasingly fierce. This mechanism allows users to lock their ETH into Swell and receive swETH to experience and enhance the security of other DeFi platforms without losing capital.

Jingle bell time is a Swell time! ❄️💙

Mint $swETH then restake on @eigenlayer for pearls and points.

🔹60 pearls for both mint and restake
🔹Ongoing restaking pearls
🔹EigenLayer points
🔹ETH staking rewards

EigenLayer caps are still open, but will close soon, anon. 🐸⚪️ pic.twitter.com/DCaG93Zc1N

— Swell (@swellnetworkio) December 24, 2023

Most of this is being deposited back into EigenLayer, the restaking platform that just hit the $1 billion TVL mark today. More than 53,000 swETH, worth more than $120 million, have been generated since the rewards program launched.

EigenLayer has the opposite mechanism, allowing users to redeem ETH from many different types of liquid staking tokens. The new platform has added 6 new LST pools, including swETH (Swell), sETH (Stakewise), xETH (Stader), oETH (Origin), ankrETH (Ankr), wBETH (Wrapped Beacon Ether). Among these, Swell is receiving the highest popularity from the community.

The rapid increase in Swell’s TVL further strengthens the role of the liquid staking segment in the Ethereum ecosystem. Although the mechanism seems simple, these platforms are delivering significant capital efficiency and removing barriers to using DeFi for users.