DeFi TVL Is On The Cusp of Dropping To Lowest Level Since June 2021

It should not be surprising that DeFi platforms struggle massively these days. The Total Value Locked in the industry is about to drop below $100 billion for the first time since Mid-2021. Dwindling crypto prices aren’t helping much, although the overall appeal of decentralized finance wanes too. 

DeFi TVL Keeps Dropping

When the prices of all [popular] crypto assets go down, it will affect various aspects of the broader industry. One such aspect is the Total Value Locked across decentralized finance protocols, products, and services. These projects thrive when prices go up and attract plenty of liquidity. Conversely, users will eagerly remove liquidity when momentum sours and move funds to a non-custodial wallet.

Additionally, the assets locked in these protocols remain subject to intense volatility. As the bearish pressure isn’t relenting, the TVL metrics will drift lower. A fresh 7.21% decline has been recorded these past 24 hours, bringing the metric to $103.34 billion. It is a matter of time until it goes below $100 billion, levels not seen since June 2021. 

As one would expect, all of the protocols continue to bleed TVL today. Substantial losses have been recorded by Curve (-15.82%), Lido (-17.76%), and Convex Finance (-15-91%). These are weekly and not daily changes, but they are still problematic. On the monthly scale, Lido has lost over 29.3%, followed by MakerDAO’s 19% and Curve’s 17.78%. Nothing to be happy about and no immediate recovery in sight either.

Decentralized exchanges seem to fare slightly better, surprisingly. Uniswap has a monthly loss of 7.51%, primarily due to this week’s TVL increase of over 8%. PancakeSwap is down by nearly 3% for the month, as this week saw an outflow of 2.69%. Still respectable trends given the overarching momentum triggering double-digit percentile losses with ease. It will be interesting to see if DEXes can sustain this “small drop” for much longer, though.

Tron Is Still in The Green

Whereas all major networks and chains continue to bleed Total Value Locked, there is one exception. Tron, which recently claimed the third spot by TVL from Avalanche, has a weekly deficit of 2.89%. However, its monthly performance is +55.74%. It is a very different trend compared to all other networks and one that offers a glimmer of hope.

Unfortunately, there isn’t much excitement elsewhere. Weekly losses for all networks range from 5.72% and 17.37%. That latter figure applies to Fantom, a network that has been battered for DeFi TVL in recent months. Sadly, things head in the same direction for Ethereum, BNB Chain, Avalanche, Solana, polygon, Arbitrum, and everything else. Mixin and Kava, two other networks noting growth this month, try to cling to their TVL gains. 

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.

JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

Published by
JP Buntinx

Recent Posts

SEC Voices Concerns Over Hedge Funds Closing Deals Via WhatsApp

Conducting financial business can be done in various ways. In today’s modern era, using social…

2 hours ago

4 benefits to the Cardano ecosystem

Cardano (ADA) is a promising altcoin that has been making waves in the crypto community.…

2 hours ago

Crypto Investing Made Easy

Is it Hard to Start Investing in Cryptocurrencies? Many people who are unfamiliar with cryptocurrency…

3 hours ago

Boba Network Launch Can Enhance Uniswap’s Expansion Into Key Asian Countries

Some of Uniswap's community proposals go over way better than others. For example, a recent…

4 hours ago

Building Your Career in Crypto: What You Should Know

So, you want to build a career in cryptocurrency? You must be a bold, innovative,…

5 hours ago

Limit Break’s Upcoming Super Bowl Commercial Breaks the Paradigm for Online Gaming; Interactive Advertising

Company plans to give away thousands of NFTs (non-fungible tokens) to viewers, introducing massive audience…

5 hours ago