The realm of decentralized finance (defi) is grappling with the aftermath of the sweeping crypto market slump that marked the close of August. As it stands, the total value locked (TVL) in defi, pegged at $37.59 billion, has plummeted to a low last witnessed in the second week of February 2021.
Crypto Winter’s Grip on Defi: TVL Stumbles to $37 Billion
The total value locked in defi is on a steady decline, and as of September 1, 2023, it’s teetering at roughly $37.59 billion. Rewinding to February 9, 2021, this was the last time the TVL stood at such a level, right before it surged to its record peak.
By May 11, 2021, it swelled to an impressive $121 billion, and by November 8, 2021, it soared to a staggering $178 billion. Although there was a brief resurgence to $161 billion on April 2, 2022, the TVL has been in a consistent descent since the all-time high.
As of the first of September this year, Lido reigns supreme as defi’s leading protocol by TVL, boasting a $14.06 billion TVL. Hot on its heels are Makerdao, Aave, Justlend, and Uniswap, completing the top-tier quintet of defi protocols based on TVL size. Makerdao stands at $5.05 billion, Aave at $4.49 billion, Justlend at approximately $3.33 billion, and Uniswap close behind with about $3.27 billion this weekend.
Curve Finance claims the sixth spot, with $2.33 billion tucked away. While all six experienced percentage dips recently, Lido saw a 0.73% uptick this past week, and Makerdao enjoyed a 0.99% rise.
In the realm of defi TVLs by blockchains, Ethereum wears the crown with a dominant 57.26%, translating to $21.427 billion locked. Tron secures the runner-up position with $5.223 billion, representing 13.96% market share. Following them are Binance Smart Chain (BSC), Arbitrum, and Polygon, rounding off the top five chains by TVL.
BSC emerged as the week’s market performer with a 2.35% ascent, while Polygon leaped 0.90% higher. However, the remaining three in the top five blockchains witnessed a week of losses. Much like other crypto sectors, defi is grappling with the chill of a prolonged crypto winter.
What do you think about the recent defi downturn? Share your thoughts and opinions about this subject in the comments section below.
Source: Bitcoin
