<p><span style="font-weight: 400;">Cosmos-based Layer 1 blockchain Canto's total value locked (TVL) doubled in January, reflecting a breakthrough for the emerging blockchain. </span></p> <p><span style="font-weight: 400;">On Canto, TVL — or the dollar amount of assets staked on the network — has risen to $137 million from $66 million on Jan. 1, according to DeFiLlama <a href="https://defillama.com/chain/Canto">data</a>. This 107% TVL surge came after an <a href="https://variant.fund/articles/canto-a-layer-1-incentive-experiment/">investment</a> from Variant Fund, a VC firm, earlier this month.</span></p> <p>With a growing TVL, Canto is now the fourth most-valuable Layer 1 blockchain in the Cosmos ecosystem, lagging behind Cronos, Kava and <a href="https://www.theblock.co/post/193252/cosmos-largest-dex-osmosis-launches-a-stableswap-exclusive">Osmosis</a>.</p> <p><a href="https://www.theblock.co/post/189258/synapse-enables-bridging-to-new-layer-1-called-canto"><span style="font-weight: 400;">Canto</span></a><span style="font-weight: 400;"> has been attracting attention for its focus on incentivizing the development of DeFi apps, which operate without taking fees from users and rely on Canto incentives. The network provides subsidies to incentivize liquidity providers and lenders who support its decentralized exchanges and lending market.</span></p> <h2>Activity surge</h2> <p><span style="font-weight: 400;">The network's native decentralized exchange, Canto DEX, has seen a significant rise in daily trading volume in January, reaching $52 million, from less than $2 million at the start of this month, CoinGecko</span> <a href="https://www.coingecko.com/en/exchanges/canto_dex#statistics"><span style="font-weight: 400;">data</span></a><span style="font-weight: 400;"> shows. </span></p> <p><span style="font-weight: 400;">Additionally, the amount of assets sent to Canto from bridges with Ethereum has increased by over $74 million in January, according to on-chain</span> <a href="https://dune.com/smyyguy/canto"><span style="font-weight: 400;">data</span></a><span style="font-weight: 400;"> provided on Dune. Meanwhile, the price of Canto's native token has risen by several times during January. It currently trades at $0.4, up 500% from $0.08 during the month. </span></p> <p><span style="font-weight: 400;">Although Canto's approach to funding developers and public-good DeFi protocols has</span> <a href="https://www.theblockresearch.com/layer-by-layer-canto-sees-growth-but-also-centralization-186068"><span style="font-weight: 400;">attracted</span></a><span style="font-weight: 400;"> interest from the crypto community and investors, the long-term sustainability of the network's model is unclear due to its high inflation rate, as <a href="https://www.theblockresearch.com/canto-growth-continues-amidst-changes-in-monetary-policy-206376">noted</a> by researcher Kevin Peng from The Block. </span><span style="font-weight: 400;">The circulating supply of Canto has increased by 158% since September, from approximately 164 million to approximately 424 million.</span></p> <div class="w-full border-b border-black/10 dark:border-gray-900/50 text-gray-800 dark:text-gray-100 group dark:bg-gray-800"> <div class="text-base gap-4 md:gap-6 m-auto md:max-w-2xl lg:max-w-2xl xl:max-w-3xl p-4 md:py-6 flex lg:px-0"> <div class="w-[30px] flex flex-col relative items-end"> <div class="relative flex"> </div> </div> </div> </div><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>