Fun

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

News Feed - 2022-05-15 11:05:51

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. Total value locked (TVL) in decentralized finance (defi) on May 15, 2022.


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. Tags in this story Aave, Anchor, Arbitrum, Avalanche, Binance Smart Chain, Bridges, BSC, Cross-chain Bridges, crypto assets, cryptoslam.io, Curve.finance, decentralized finance, DeFi, Defi Apps, Defi protocol, defi value locked, defillama.com, Ethereum, Fantom, lending app, Lido, makerdao, NFT sales, Polygon, ronin, Solana, Terra


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. 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 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Lido Deploys Additional Curve Pool to Improve Liquidity Around Bonded ETH Peg DEFI | 2 days ago Terra Fiasco Stirs Value Locked in Defi — Lido, Anchor Plummet to Lower Positions DEFI | 4 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleTerra’s Big Backers, Shanghai Court Declares Bitcoin Property, BTC Obituaries, and Triple Top Hopes — Bitcoin.com News Week in Review Next articleAuthorities Seize Over 1,500 Crypto Mining Rigs in Dagestan Crackdown 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 ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher

News Feed

Ripple backs Deaton with $1M donation in senate race against Warren
Derek Andersen2 hours agoRipple backs Deaton with $1M donation in senate race against WarrenRipple has the back of one its strongest supporters in his attempt to unseat powerful Senate crypto foe Elizabeth Warren.2099 To
Binance execs detained in Nigerian capital despite country exit
Helen Partz13 hours agoBinance execs detained in Nigerian capital despite country exitSenior Binance execs Tigran Gambaryan and Nadeem Anjarwalla have been detained at a government property since Feb. 26.4335 Total views
SEC Denies Freedom of Information Act Request Concerning Tether Documents
SEC Denies Freedom of Information Act Request Concerning Tether Documents On September 24, the staff writer for The New Republic, Jacob Silverman, tweeted about a Freedom of Inform
Bitcoin L2s help crypto miners in Asia supplement income with staking
Shiraz Jagati10 hours agoBitcoin L2s help crypto miners in Asia supplement income with stakingBitcoin L2s remain crucial to the Asian crypto ecosystem, offering miners new revenue streams after the most recent halving.94
Uniswap Price Nears Moving Average: A Crucial Test For Market Dynamics
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Binance gets Dubai crypto license following CZ’s departure: Report
Zoltan Vardai57 minutes agoBinance gets Dubai crypto license following CZ’s departure: ReportThe full regulatory license could turn the tides for Binance, which has been under intense regulatory scrutiny for at least t
Brayden Lindrea3 hours agoGoogle to invest another $2B in AI firm Anthropic: ReportGoogle has already invested $500 million as part of the deal, while the outstanding $1.5 billion will be paid over time, according to The
Stablecoin transfer volume increased 16x during past 4 years
Zoltan Vardai11 hours agoStablecoin transfer volume increased 16x during past 4 yearsIncreased stablecoin usage could be a sign of growing crypto adoption for a maturing industry.1181 Total views36 Total sharesListen to
Palau partners with Soramitsu on blockchain-based bond platform
Derek Andersen6 hours agoPalau partners with Soramitsu on blockchain-based bond platformThe Pacific island nation, with a population of 18,000, is a leader in the implantation of blockchain technology.839 Total views3 To
Goldman Sachs Sees Huge Institutional Demand for Bitcoin — 76% of Clients Say BTC Price Could Reach $100K This Year
Goldman Sachs Sees Huge Institutional Demand for Bitcoin — 76% of Clients Say BTC Price Could Reach $100K This Year Global investment bank Goldman Sachs is see
Bitso Partners With Felix Pago to Offer Whatsapp-Based Remittance Services Between Mexico and US
Bitso Partners With Felix Pago to Offer Whatsapp-Based Remittance Services Between Mexico and US Bitso, a Latam-focused cryptocurrency exchange, has partnered with chat-based payme
Bitcoin breaches $60K for the first time in over 2 years
Zoltan Vardai10 hours agoBitcoin breaches $60K for the first time in over 2 yearsThe last time Bitcoin traded above $60,000 was in November 2021, shortly after it reached its all-time high. Is a “pre-halving retracemen