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.
Defi Sector Navigates an Extended Crypto Winter: TVL Dips to February 2021 Levels
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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.
