The cryptocurrency market’s recent surge has led to significant gains for various crypto protocols, including the blockchain interoperability protocol Wormhole. After a market downturn in May 2022, Wormhole’s Total Value Locked (TVL) has impressively climbed back to $1 billion, a milestone it hadn’t reached in nearly two years.
Wormhole’s TVL reached $1.02 billion, with Ethereum, Fantom, and Solana being the top three contributors, boasting $675 million, $174 million, and $96 million, respectively. This marks a substantial recovery from early 2023 when the TVL dropped to $234 million, representing an increase of over 300%.
Previously, Wormhole had peaked at a TVL of $3.8 billion shortly before the Terra ecosystem collapse. A significant development for Wormhole was the closure of a successful funding round on November 29, 2023, raising $225 million at a valuation of $2.5 billion.
In February 2022, Wormhole suffered a $320 million loss due to a vulnerability between Ethereum and Solana ecosystems. Following the hack, venture firm Jump Crypto pledged to replace the lost funds, and a counterattack by Jump Crypto and Oasis resulted in the recovery of $225 million in crypto assets for users.
Currently, Wormhole is one of the most popular cross-chain and messaging services, with around 51,807 transactions and 2,394,665 messages sent by users in the last 24 hours. The protocol has processed a volume of $38 billion since its launch in September 2021. The competition with LayerZero has heated up, with Wormhole gaining an edge as LayerZero suspended operations due to user expectations of an airdrop.