Crypto Bloodbath Spills to DeFi as TVL Nosedives
When the digital currency ecosystem records as much as a plunge below $1 trillion in combined market capitalization, the Decentralized Finance (DeFi) ecosystem can certainly not be spared.
While Bitcoin (BTC), the industry’s legacy coin, has skidded back to its lowest level since December 2020, the DeFi Total Value Locked (TVL) has also plunged in tandem, dropping to $83 billion at the time of writing.
For context, the DeFi TVL was pegged at around $114 billion, as reported by Blockchain.News back in May was a figure which was considered very low considering its prior leaps.
The spill-over in the crypto ecosystem into the DeFi world is unprecedented, and it explains the growing lack of faith amongst both retail and institutional investors in the ability of the DeFi protocols and their underlying products to help print marginal profits.
MakerDAO (MKR) still maintains its 9.67% dominance in the DeFi industry atop an $8.03 billion in Total Value Locked. Curve Finance (CRV), Aave (AAVE), and Lido Finance (LDO) trailed Maker in that order with respect to their relevance, but not without an encompassing minimum drop of 25% from all three protocols.
Bad But Not All is Worse
While the outlook of the DeFi ecosystem looks very bad, the trends are not completely worse for all of the protocols as some are maintaining a positive growth even amidst this encompassing uncertainty.
Frax Finance (FRX) is amongst the protocols with a marginal growth per its TVL upshoot. With a daily change of 0.21% and a weekly change of 2.48%, it is evident that investors consider the protocol one of the most resilient for now.
Solana-based AMM protocol, Atrix, Maple Finance, and Spool Protocol have also shown far more resilient growths on the weekly chart compared to the reality in the broader crypto ecosystem.
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Crypto Market Onslaught Stretches to DeFi as TVL Slumps to $114bn