Yup!
I know it seems weird when you've had a certain limit, take more money out then you put in and the next year your limit is higher but that's how it works.
You can think about that growth kind of like a stomach. The growth that happened in your TFSA stretched it out, so even though you took that money out for a bit the TFSA is still stretched out and you can put that extra bit back in. Without running into any issue. :)