X Layer's DeFi Shift Driven by PotatoSwap's TVL Surge

The total value locked (TVL) on PotatoSwap, a decentralized exchange (DEX) operating on the X Layer blockchain, has exceeded $11.9 million, marking it as the largest DEX on the X Layer network. This milestone reflects a significant shift in the decentralized finance (DeFi) landscape, with users increasingly adopting the platform for its liquidity and trading capabilities. As of the latest data, the DEX has captured a dominant share of the X Layer ecosystem, outpacing other decentralized platforms in terms of capital inflow and user activity.

The rise of PotatoSwap is underscored by the performance of one of its most active trading pairs, XPE/WOKB. XPE, or X Pepe, is a meme-inspired token on the X Layer blockchain. It has seen a trading volume of $123.79 in the last 24 hours, although this represents a 62.50% decline compared to the previous day. Despite the recent dip in trading activity, the token continues to attract attention, with the majority of trades occurring on PotatoSwap. The exchange’s dominance in the X Layer DEX space is largely attributed to its role as the primary venue for XPE token trading.

In terms of market capitalization, X Pepe has a current market cap of BTC0.1098, with a circulating supply of 42 trillion tokens. The token’s fully diluted valuation (FDV), which assumes all 42 trillion tokens are in circulation, is also BTC0.1098. This suggests that the token has not yet reached its theoretical maximum valuation and that its price trajectory could be influenced by the rate at which new tokens are released into the market. Analysts have noted that the token’s performance is closely tied to broader market sentiment and the overall health of the X Layer ecosystem.

The underperformance of X Pepe compared to its peers has also been a point of discussion. In the past seven days, the token has seen no change in price, while the broader cryptocurrency market has risen by 5.10%. Furthermore, it has underperformed relative to similar meme cryptocurrencies, which have experienced a 19.80% increase in the same period. This gap highlights the challenges that X Pepe faces in maintaining investor interest in a rapidly evolving market environment.

The growing TVL on PotatoSwap also signals a broader trend of increasing engagement with X Layer-based DeFi platforms. As more users seek out decentralized alternatives to traditional finance, the X Layer blockchain is positioning itself as a hub for DeFi activity. The platform’s ability to attract liquidity and maintain high levels of TVL will be key to its long-term success and could influence the broader development of the X Layer ecosystem.