Current DeFi Market Drops as TVL Drops Below $200 Billion
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Curve, an Ethereum-based DeX liquidity pool, dominates with its TVL at 7.98%. The average monthly revenue raised by DeFi protocols in April 2022 is $159.24 million.
The DeFi market boomed in the summer of 2020. By the end of May 2020, total value locked (TVL) had risen to one billion and the sector continued to gain momentum. New projects flooded into the industry, directing investor attention to DeFi. According to statistics, the TVL in DeFi protocols was registered at $203.01 billion on Saturday and today, at the time of writing, it was registered at $199.32 billion and this indicates a loss of 18%.
Ethereum's smart contracts opened the gateway to the decentralized financial (DeFi) ecosystem. MakerDAO, an Ethereum-based crypto project, is the pioneer for any DeFi project. It was launched in 2015 allowing users to generate DAI, a dollar-pegged stablecoin, from the ether. Lending, lending and strike protocols became an important part of the sector. Decentralized Exchanges (DEXs) helped DeFi establish an open financial market in the crypto world.
Poor performance from DeFi
DeFi protocols built on the Ethereum blockchain dominate the market by holding $142.84 billion in its TVL at the time of writing, making up 57% of the total. Curve Finance, the original DEX liquidity protocol, lost 11.64% in the past 30 days – TVL and now stands at $19.94 billion. Terra-based DeFi protocols are the real contenders, worth $31.73 billion. The native Anchor protocol, the only DeFi protocol in the top 5, gained 2.19% and has $19.55 billion in its TVL.
In March 2022, the average monthly revenue of the DeFi protocols was $171.39 million and declined 7.089% to $159.24 million in April. Decentralized exchanges (DEXs) have also fallen in terms of volume traded. So far, the maximum peak of $200.45 billion was reached in November 2021. Last month, it fell below $92.18 billion. According to DeFi analysis, Uniswap (v3) had the maximum volume share of $39.02 billion, followed by other DEXs such as Pancake Swap ($13.27 billion), Uniswap (v2) at $13.27 billion and Dodo at $5.85 billion.