The Ethereum Layer 2 Network, Taiko (TAIKO), has seen an unprecedented monthly growth in October as its total value locked (TVL) surged by 1000% to touch a new high of $81 million.

This massive increase in Taiko’s TVL showcases the rise in activity in its native decentralised finance (DeFi) applications like the lending platform Avalon Finance and DEX Panko Finance. This also indicated a rise in crypto investors' interest in Taiko. Both Panko and Avalon’s TVL went above $30 million last month.

The ever-surging TVL means more people are drawn to the Layer 2 DeFi protocols of Taiko as it offers faster transactions at lower costs in comparison to Ethereum Mainnet.

Taiko’s daily transactions volume reached an all-time high of more than 5 million, a day before the US election. This shows that the network's available infrastructure is in high demand as it offers cost-effective and efficient transactions which is making users migrate to Layer 2 networks. Taiko's growth statistics are dependent on its ability to maintain low transaction fees while handling high volumes.

Growth in native DeFi protocols like Panko Finance is the reason behind the rapid expansion of Taiko. The DEX collected more than $3 million in trading fees in 24 hours. It usesUniswap v3-based architecture to offer liquidity protocols that are mainly dominated by Bitcoin tokens from Solv Protocol which makes up 90% of the deposits on the platform. Taiko has a strategy of providing liquid staking assets and yield bearing to a wide range of DeFi users which enhances its appeal.

Meanwhile, the lending protocol of Taiko Avalon Finance has increased its TVL by offering loans on TAIKO, ETH and USDC tokens. The network's low interest rates and transaction costs have made Avalon a favourite of lenders and borrowers. This underlines the increasing utility of Taiko’s DeFi ecosystem for crypto users looking for alternative lending solutions.

TakoTako, the largest lending application on Taiko also added to its TVL surge as it offers USDC and ETH as primary assets along with low interest rates. Crypto users aren't dejected by the modest returns of TakoTako as seen in its steady TVL.

This Layer 2 solution is positioned for wider market adoption and growth as it facilitates high transactions throughout coupled with drawing substantial TVL. Taiko is emerging as a formidable competitor in the DeFi landscape courtesy of its growing DeFi activity and user base.

At the time of publication, Taiko was trading at $1.43, down by 3.02% as its market capitalization stood at $116.62 million while its trading volume decreased by nearly 55% to touch $18.21 million.