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.
source link : https://news.bitcoin.com/trust-in-decentralized-finance-rattled-after-100-billion-left-the-defi-economy/
