The total wealth locked in the Canto blockchain based on Cosmos has doubled this month.
The total value locked (TVL) of the Cosmos-based Layer 1 blockchain Canto doubled in January, marking a milestone for the developing blockchain.
According to DeFiLlama statistics, Canto’s TVL, or the dollar amount of assets staked on the network, has increased to $137 million from $66 million on January 1. This month’s investment by Variant Fund, a VC company, led to a 107% increase in TVL.
Canto is presently the fourth most valuable Layer 1 blockchain in the Cosmos ecosystem, after Cronos, Kava, and Osmosis due to its increasing TVL.
Canto’s emphasis on rewarding the creation of DeFi applications, which run without charging customers and depend on Canto incentives, has attracted attention. The network rewards liquidity providers and lenders that support its decentralized exchanges and lending market with incentives.
Canto DEX, the network’s native decentralized exchange, experienced a substantial increase in daily trade volume in January, from less than $2 million to $52 million, according to CoinGecko statistics.
In addition, according to on-chain statistics supplied by Dune, the number of assets transported to Canto through Ethereum bridges surged by more than $74 million in January. In January, the price of Canto’s native token multiplied many times. It is presently trading for $0.4, up 500% from $0.08 in the previous month.
Although Canto’s approach to paying developers and public-good DeFi protocols has attracted attention from the crypto community and investors, the network’s model’s long-term viability is uncertain owing to the network’s high inflation rate, as observed by The Block researcher Kevin Peng. Since September, the amount of Canto in circulation has surged by 158%, from around 164 million to approximately 424 million.
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