The DeFi protocol continues to attract capital, despite softening crypto prices.
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The crypto market began in 2022 with price softening. However, that weakness is not felt in the decentralized finance (DeFi) lending platform, which continues to attract large amounts of capital deposits. Analyzing data from Dune Analytics on the top three platforms, a total of about $ 40 billion in locked value (TVL), a deposit that can be used as collateral for lending or borrowing.
Deposits on the lending protocol hold approximately $ 40 billion.
https://dune.xyz/hagaetc/lending
In addition, loan demand is stable, according to Dune Analytics. At the time of writing, it is hovering about $ 20 billion.
Despite the market downturn, DeFi loan balances have reached nearly $ 20 billion.
https://dune.xyz/hagaetc/lending
The three lending protocols mentioned above are the largest in market capitalization and TVL. But they are not the only ones in town. Especially when leaving the Ethereum ecosystem.
LUNA is a native token of the Terra blockchain network and is also a collateral asset used to create UST, Terra’s native stablecoin. UST and LUNA increased explosively in 2021 in terms of both price and utilization and were backed by the Anchor Protocol. Anchor is a terra-native savings platform that allows users to get above average deposit rates. These deposits can be lent to the borrower.
Since 2021, Anchor has seen deposits and loans swell to about $ 5.3 billion and $ 2 billion, respectively. The previous figures do not take into account the additional $ 5.7 billion of UST used as collateral. Anchor’s current TVL is a whopping $ 11 billion.
Anchor’s UST stable coin deposits have been swelling since 2021.
https://app.anchorprotocol.com/
Returning to the Ethereum ecosystem, Abracadabra Money is a new lending protocol that allows users to borrow in the “long tail” of their assets. In addition, the protocol has implemented Degenbox, a strategy for optimizing revenue. This creates a circular feedback loop to elicit returns.
As a result, Abra Kadabra’s TVL and loan balances surged to $ 6 billion and $ 3 billion, respectively, in a short period of time.
Abracadabra Money’s TVL has increased parabolic since September 2021.
http://dashboard.abracadabra.money/
One possible explanation for the consistent growth of DeFi deposits is that market weakness is driving both retail and institutional investors from “dangerous” assets to assets that generate “safer” yields. That is.
It’s too early to test the above hypothesis, but we’ll definitely get additional insights in the coming months.
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