Bitcoin News and Finance
Trust in Decentralized Finance Rattled After $100 Billion Left the Defi Economy Skip to main content

Trust in Decentralized Finance Rattled After $100 Billion Left the Defi Economy

Trust in Decentralized Finance Rattled After $100 Billion Left the Defi Economy

The effect of Terra’s demise continues to shine a light on the fragility surrounding the decentralized finance (defi) ecosystem. Things have changed a great deal following Terra’s aftermath, as the total value locked (TVL) in defi has plummeted from $231 billion to today’s $112.29 billion, losing 51.38% in 42 days.

Defi TVL Plunges More Than 50% Since April 3, Terra Implosion Impacts Defi Economy the Most

The total value locked in defi today is just above the $100 billion mark at $112.29 billion. While the TVL has been sliding since almost reaching an all-time high on April 3, last week’s Terra chaos removed most of the TVL held in decentralized finance protocols.

In addition to commanding a $231 billion TVL 42 days ago on April 3, the Terra blockchain held $30.45 billion or 13.15% of the $231 billion aggregate at that time. Terra held the second-largest TVL in defi and today, Terra is in the 14th position with only $500.38 million.

Out of Sunday’s $112.29 billion, Ethereum dominates the TVL in defi with 63.63% of the aggregate in defi or $71.09 billion. The second-largest TVL in defi is tethered to Binance Smart Chain (BSC) with 7.71% of the $112.29 billion or $8.62 billion held on BSC.

Another significant change this week that occurred was the downfall of Curve’s defi dominance, as Makerdao is now the largest defi protocol in terms of TVL size. Makerdao dominates by 9.40% with its $10.56 billion TVL and Curve now holds $8.76 billion.

Curve’s current TVL is a lot different than it was on April 3, when it was $21.17 billion roughly 42 days ago. The top 28 defi protocols today have seen significant TVL reductions during the past seven days. While Makerdao leads it is still down 13.73% this week and Curve is down 49.18% this past week as well. Lido has shed 46.37% and the defi application Aave has lost 21.94% this week.

After being the third-largest defi application in terms of TVL a week ago, Anchor has dropped to the 58th position after losing 97.76% this week. Stats show that Anchor has $309.78 million total value locked in the lending protocol today.

17 defi protocols have at least $1 billion or more as far as TVL size is concerned. There’s still $419 billion in smart contract protocol tokens today with ethereum leading the pack. Terra now holds the 18th position in terms of smart contract platform token market capitalizations.

While Terra’s issues rippled across the entire crypto-economy, the carnage affected decentralized finance the most. Not only was trust shaken to the core, but well over $100 billion was removed from defi in less than a week’s time.

It’s likely going to take some time before trust is regained, and the $100 billion lost is added back to the defi ecosystem. Out of all the defi chains, Ethereum benefited the most as dominance has increased a great deal since last week. Although, Ethereum still felt the impact, as the chain lost 31.53% during the past seven days.

What do you think about the state of defi today? What do you think about the trust that’s been lost and the $100 billion wiped away from the defi space? Let us know what you think about this subject in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory