The total value locked (TVL) in the decentralized finance (DeFi) sector surged last month, according to the crypto intelligence platform DappRadar.

TVL refers to the amount of capital deposited within a protocol’s smart contracts and is often used to gauge the health of a crypto ecosystem.

DappRadar notes in a new monthly analysis that the DeFi sector’s combined TVL grew to $159 billion in February, a 45% increase from the previous month. It also represents the highest level of TVL recorded by the sector since May 2022.

DappRadar believes the crypto sector is only in the “nascent stages” of its current bull run.

“Traditional indicators of a market peak, such as the Coinbase app topping the charts on Apple’s AppStore, high-profile crypto advertisements during the Super Bowl, or widespread retail fear of missing out (FOMO), have yet to manifest.

Despite these speculative aspects, the core technology and solutions provided by DeFi are truly promising, holding immense potential to transform our financial systems fundamentally. The anticipation for what unfolds next in the DeFi sector is high, as it continues to address and offer groundbreaking solutions to existing financial challenges.”

The crypto intelligence platform also notes that the non-fungible token (NFT) sector didn’t witness the same kind of growth as DeFi in February: monthly NFT trading volume clocked in at $1.32 billion, a 14% decrease from January.

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