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Benqi, the biggest dApp in the Avalanche (AVAX) ecosystem, is doing well as its Total Value Locked (TVL) rises. The BI token surged to a high of $0.0374, its highest point since March 2022. It has soared by more than 450% from the lowest point this year, giving it a market cap of over $114.2 million.
Benqi is a leading player in the Avalanche network that provides two crucial services: liquid staking and markets. Liquid staking is a platform that enables users to stake their AVAX tokens and earn a return. Unlike the traditional approach of staking, users can withdraw their tokens at any time. Benqi has over $274 million in assets.
Its markets solution enables users to lend, borrow, and earn a return on their investment. Data shows that the platform has over $305 million in supply assets and more than $67 million in borrowed assets.
Benqi has also introduced validator tools for the Avalanche network. In a statement, the company said that it will enable people to rent a Subnet and become a validator in the network.
The ignite’s solution introduced a Pay as You Go validation to solve the barriers to entry in validation. An Avalanche validator costs about $60,00, which is unaffordable to most people.
1/ An #Avalanche validator currently costs $60,000.
— BENQI🔺 (@BenqiFinance) December 7, 2023
But what if you could rent a Subnet?
Introducing Ignite's Pay As You Go validation – run a validator for only 4 $AVAX per week – Now LIVE on mainnet 👇🧵 pic.twitter.com/TyD8j2jhnR
In all, Benqi’s total value locked has bounced back in the past few days and now it stands at over $538 million, the highest point since March 2022. It bottomed below $500 million earlier this year.
This rally is mostly because of the Avalanche pricesurge, which has pushed it to over $36. In AVAX terms, the TVL has actually slipped a bit to 15 million from the year-to-date high of over 18 million.Benqi’s revenues have also risen in the past few months. In October, the platform had over $65k in fees followed by $107k in November. In December alone, these fees have risen to $44k. If the trend continues, there is a likelihood that this revenue will be higher than in December.
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