In a remarkable turnaround from the cryptocurrency bear market of May 2022, Wormhole, a leading cross-chain protocol, has successfully rebuilt its total value locked (TVL) to an impressive $1 billion. This recovery comes nearly two years after a significant downturn in the crypto market.
As of now, Wormhole’s TVL stands at $1.02 billion, driven primarily by assets like Ether, Fantom, and Solana’s SOL, valued at $675 million, $174 million, and $96 million respectively. This represents a significant leap of over 300% from its low of $234 million at the start of the year. Prior to the crypto market crash, triggered partly by the collapse of the Terra ecosystem, Wormhole had reached a peak TVL of $3.8 billion.
This resurgence aligns with the broader recovery in the crypto market and follows a substantial $225 million funding round in November 2023, valuing the company at $2.5 billion. However, Wormhole’s journey has not been without challenges. In February 2022, the protocol suffered a major setback when hackers exploited a glitch in its Ethereum–Solana bridge, resulting in a loss of over $321 million.
In response to this incident, venture capital firm Jump Crypto stepped in, replenishing more than $320 million in lost funds. Furthermore, in February 2023, a joint effort between Jump Crypto, its then-parent entity, and Oasis.app successfully counteracted the hack, recovering $225 million in user assets.
Today, Wormhole has emerged as a prominent player in the cross-chain and messaging service arena, boasting approximately 51,807 transactions and 2,394,665 messages in just the past 24 hours. The platform is especially active in bridging Ether to networks like Sui, Solana, and Arbitrum. Since its launch in September 2021, Wormhole has processed a total volume of $38 billion, marking its significant role and recovery in the dynamic world of cryptocurrency.