Decentralized Finance Protocols Flounder as Value Locked in Defi Shed More Than 25% Since FTX Collapsed

Decentralized Finance Protocols Flounder as Value Locked in Defi Shed More Than 25% Since FTX Collapsed

On December 12, 2022, the total value locked (TVL) in decentralized finance (defi) has been range bound after falling 25.5% from $55.94 billion on Nov. 5, to today’s $41.67 billion. Moreover, during the past 12 months, the TVL in defi dropped 82.56% from roughly $239 billion in Dec. 2021, to today’s aggregate. Smart Contract Token Economy and Defi Sector Struggle Following Last Month’s FTX Fiasco

Decentralized finance (defi) has suffered a great deal from the FTX fiasco as the total value locked (TVL) in defi has shed 25.5% in value in 37 days. At the time of writing, the TVL in defi today is an estimated $41.67 billion and the TVL has declined 1.63% in the past 24 hours.

The defi protocol Makerdao commands the largest TVL today with $6.26 billion in value locked, and a dominance rating of 15.02% against the rest of the defi protocols’ TVL standings. Defillama.com metrics indicate that during the course of the last month, Makerdao’s TVL shrunk by 8.41%. The TVL in defi today on Dec. 12, 2022, is $41.67 billion, and the value locked 37 days ago was around $55.94 billion or 25.5% higher.

Following Makerdao, the top defi protocols in terms of TVL size include Lido, Aave, Curve, Uniswap, Convex Finance, Justlend, Pancakeswap, Compound Finance, and Instadapp respectively. Out of the entire top ten, Aave saw the largest monthly loss after it shed 15.18% in value in 30 days.

On the other hand, Convex Finance’s TVL metrics increased by 43.87% during the last month. Ethereum holds the most value locked out of all the blockchains with $23.98 billion or 57.55% of the aggregate locked in defi today.

Binance Smart Chain (BSC) has the second-largest TVL on Dec. 12, with an estimated $4.99 billion or 12.04% of the total. In terms of TVL size, Ethereum and BSC are followed by the blockchain networks Tron, Arbitrum, Polygon, Avalanche, Optimism, Fantom, Cronos, and Solana respectively.

The total seven-day volume, across all the cross-chain bridges on Dec. 12, is an estimated $810.67 million. The entire smart contract platform token economy today is $261 billion and it’s down 2.3% during the last 24 hours.

During the last 62 days or since Oct. 11, 2022, the smart contract platform token economy dropped 7.77% against the U.S. dollar from $283 billion to today’s $261 billion. At the time of writing, the largest smart contract crypto asset, ethereum (ETH), is down 1.6% against the greenback during the past 24 hours. Tags in this story Aave, Assets, Avalanche, Binance Smart Chain, Compound Finance, convex finance, Cross-chain Bridges, crypto assets, Curve, decentralized finance, DeFi, Defi protocols, Defi TVL, Ethereum, Fantom, Instadapp, Justlend, Lido, makerdao, Pancakeswap, Smart Contract Tokens, Smart Contracts, Solana, token economy, total value locked, tron, uniswap

What do you think about the current state of decentralized finance this week? Let us know what you think about this subject in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Hacker Steals $6.9 Million From Arbitrum-Based Defi Protocol Lodestar Finance DEFI | 1 day ago BNB Chain-Based Defi Protocol Ankr Suffers Major Exploit DEFI | Dec 2, 2022

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCryptowisser: 51 Crypto Exchanges Dead in 2022 – Exchange Deaths Down 40% Despite Crypto Winter Next articleReport: Alameda’s Caroline Ellison Retains SEC’s Former Enforcement Division Chief Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework

Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing