DeFi TVL Drops below $200Bn, Reflecting General Bearish Market Slump
Godfrey Benjamin May 04, 2022 02:55
The Total Value Locked (TVL) in DeFi platforms has slumped below $200 billion down from the $230 billion towards the end of April.
The Total Value Locked (TVL) in Decentralized Finance (DeFi) platforms has slumped below $200 billion, down from the $230 billion towards the end of April.
While the hit of the DeFi ecosystem has been facing models a related trend in the broader digital currency ecosystem, the DeFi slump notably lends more insight as a gauge into investors' readiness to embrace crypto investment and passive income generation when compared to the traditional financial ecosystem.
The DeFi TVL, according to DeFiLlama, was pegged at $199.31 billion, up 0.3% in the past 24 hours at the time of writing. In May, it arguably opened up in a bearish style as investors generally evaluate the growing options of protocols that can favour them in the long term.
Curve Finance, the biggest DeFi platform with an $18.84 billion TVL, slumped by 10.45% over the past month, with lending platform Aave taking one of the biggest hits with more than 20% slump in the same time frame. Amongst the elite DeFi platforms around, Terra-based Anchor Protocol came off as the most resilient DeFi platform, which grew its TVL by 4.96% in the past month, per data from DeFiLlama.
Investing funds in the majority of DeFi protocols often makes such capitals dormant, thus, shutting out investors from taking advantage of opportunities that may arise the unannounced. There are extra offshoots of the blockchain ecosystem that notably take up investors' interest across the board, and Non-Fungible Tokens (NFT) account for one of the most prominent.
With investors hustling to gain access to prestigious NFT collections like the Otherdeed to the Otherside launched by Yuga Labs, the startup behind the Bored Ape Yacht Club (BAYC) collection, over the weekend, the tendency for investors to pull funds from other DeFi platforms is high.
Image source: Shutterstock