Wormhole Cross-Chain Protocol Rebounds to $1 Billion in TVL After 2022 Crypto Bear Market
Summary:
Wormhole, a cross-chain protocol, has seen its total value locked (TVL) rise back to $1 billion after the cryptocurrency downturn in 2022. Currently, Ether, Fantom and Solana’s assets contribute the most to the TVL. The recovery occurred alongside a market rebound and a significant capital infusion. Despite being hacked in 2022, with significant financial loss, extensive efforts from venture capital firm Jump Crypto aided in retrieving a substantial portion of the lost assets. As one of the most popular cross-chain and messaging platforms, Wormhole records high daily transaction numbers and has handled a total of $38 billion in volume since its launch in 2021.
Regaining its position after nearly two years since the start of the cryptocurrency downturn in May 2022, the total value locked (TVL) of the cross-chain protocol, Wormhole, has crawled back to $1 billion. At the time of writing, the protocol's TVL is reported to be roughly around $1.02 billion, with leading contributions from Ether (ETH), Fantom (FTM), and Solana’s SOL (SOL), contributing $675 million, $174 million, and $96 million respectively. Since its low at the start of the year of $234 million, it has seen a rise of over 300%. Before the Terra ecosystem crash and the arrival of the crypto winter, the protocol recorded its highest TVL at $3.8 billion approximately 16 months ago.
The resurgence back to this notable milestone coincides with the overall market rebound and a $225-million cash influx at a $2.5 billion valuation on November 29, 2023. Wormhole suffered a serious setback in February 2022, when a flaw in its Ethereum–Solana bridge led to a theft of over $321 million through infinite minting.
In a prompt move after the attack, venture capital firm Jump Crypto committed to restocking over $320 million of the hacked funds. Subsequently, on February 25, 2023, Jump Crypto – its previous parent company, and Oasis.app orchestrated a counter-attack that led to the recovery of users' assets worth $225 million.
As of now, Wormhole ranks high among the most widely used cross-chain and messaging platforms, recording around 51,807 transactions and over 2.3 million messages sent by its users in the last 24 hours. The majority of its bridging activities currently involve transferring Ether to Sui, Solana, and Arbitrum. Since its launch in September 2021, Wormhole has handled $38 billion in volume.
In a related event, the Socket protocol recently experienced a loss of $3.3M in a confirmed approval exploit.
Published At
1/17/2024 8:24:21 PM
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