Node Project TVL Drops Off Signifcantly Amid Broader Crypto Market Turmoil


Due to uneasy sentiment affecting the cryptocurrency prices, all other industry segments suffer too. As a result, the Total Value Locked across masternode and node projects took a severe beating last month. Momentum may not turn around immediately either, as these coins are still licking their wounds. 

Node TVL Drops Off Strongly

The team at Melbourne DAO has put together some interesting statistics regarding nodes projects. Keep in mind these are nearly all small-cap currencies, although they are the ones actively pursuing this proof-of-stake/node approach. During market volatility, smaller currencies will often see much wilder fluctuations and even a strong outflow of Total Value Locked. 

The transition from April to May 2022 has been a rough one for all projects. Although the Stronger project, ranked 1169th by market cap, remains the TV leader, it noted a decline by over 73% this month. That is rather problematic, as it would signify waning confidence in the project. However, STRNGR has suffered from a steep price collapse, which isn’t helping matters whatsoever. 

A similar trend can be noted for FIRE, POLAR, COMB Podz, and PXT2, all of whom lost at least 65% in TVL in the past month. Smaller losses – but still over 40% are noted by virtually all other small-cap node projects except one. HORDE succeeded in gaining 18.43% in TVL in the past month, creating a rather intriguing trend. 

Given these statistics, one may wonder if node currencies have a future. The established projects seem to be doing alright so far, but smaller-cap projects are not having much success these days. Moreover, the dwindling asset prices do not instill much long-term confidence, as investors will flock to DeFi or NFTs in search of quick riches. 

Top Coins Are Struggling Too

One has to consider there is only one project with a node-oriented approach in the crypto market cap top 100. That project is Dash, one of the older masternode concepts in the industry. Its market cap has dropped well below $650 million, and the weekly 19.2% decrease in value isn’t helping. One DASH used to be worth $1,493 at one time, although the price hasn’t surpassed $305 in the past year. 

Other prominent node projects include Horizen, Flux, Syscoin, Beldex, Divi, Energi, etc. Except for Energi, which gained 14.4% in the past week, every other project is down. Flux lost the most value with a 24.5% drop, and every project is somewhere in between -11% and -24.5%. It is a rough patch for the masternode industry, which represents a $1.63 billion market cap today. 

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