DeFi TVL drops to a 2-year low of less than $50 billion

Net value locked in decentralized finance (DeFi) recently hit a two-year low. However, this week it has shown signs of minor improvement.

Decentralized finance has been battered over the past year as the crypto bear market bites deeper. As a result, DeFi TVL fell to its lowest level in almost two years on January 1, 2023.

The total value locked across all DeFi protocols fell to $44.2 billion over the weekend. According to DeFiLlama, this is the lowest it has been since February 2021. It has since improved slightly to $45.3 billion today.

Furthermore, TVL is currently down 79% from its all-time high of $213 billion in December 2021. This is a huge drop compared to the crypto markets, which are currently down 72% from their peak of $3 trillion in total capitalization in November 2021.

DeFi TVL 2 Chart by DeFiLlama
DeFi TVL 2 years- DeFiLlama

ethereum still king

The DeFi TVL chart is similar to the Crypto Market Cap one. TVL is measured in USD, which is a factor in crypto collateral prices. Therefore, the slump may not be due to users dumping DeFi, but an overall drop in collateral value.

Lido Liquid Staking platform is the leader in terms of market share with 13.5% and TVL of around $6 billion. most of it is eth staking, However, Lido also provides liquid betting services for other crypto assets.

DeFi pioneer MakerDAO follows in second place with similar TVL and market share. fixed currency yield platform curve Finance is the third largest protocol with around $4 billion locked up.

Ethereum remains the king of decentralized finance, with 58% of the entire ecosystem and 26.3 billion TVL. In addition, Binance bnb chain is in second place with $5.3 TVL which gives it a share of 11.7%.

However, not all networks have been losers. tron, MediationAnd the optimism has seen decentralized finance growth or stable TVL levels over the past year or so.

DeFi coins are in limbo

Tokens and coins related to the region are more difficult to find than their brethren. DeFi asset market capitalization has tanked 80% since its all-time high coingeco,

The DeFi token crypto market cap is $34.9 billion, with a total trading volume of $1.5 billion in the last 24 hours. High-cap coins that have become a hit in the past year include Uniswap (university, chain link ,Contact), lido (I do), Frax, and Come on, However, there are a few going on today:

disclaimer

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