Total decentralized finance (DeFi) TVL has been declining since market losses began. The market, which once rose to as high as $ 250 billion in TVL, has now lost most of its value. With the recovery of the crypto market last week, the DeFi market seemed to be starting to see the last few at the end of the tunnel. But given that TVL has fallen again, it has proven not to be the case.
DeFiTVL Saves $ 5 Billion
In July, the DeFi market added over $ 10 billion to TVL. It started at $ 72 billion and has grown to nearly $ 87 billion by the middle of the month. This recovery was due to market profits from major networks such as Ethereum and Polygon. This recovery has also created the coveted confidence that more tokens will move into the DeFi space. It’s until the weekend when the market begins to make all its profits.
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Blowed over $ 1,600 at the height of the recent rally, Ethereum soon began to decline, lowering TVL. So far, DeFiTVL has fallen by $ 5 billion over the last two years. This explains the 5.81% decline in the DeFi market.
Over the last 24 hours, DeFi Llama data show that DeFi TVL has declined by 4.49% at the time of this writing. Higher networks are also declining at this scale. For example, Ethereum is down 4.86% and the BSC network is down 3.78% on the final day.
Tokens don’t work that well
DeFi TVL is not the only hit. In fact, the decline in this aspect of the market is a direct result of the decline recorded on DeFi tokens. These tokens were at the forefront of relief rallies, following in the footsteps of market leader Ethereum.
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However, retracements were cruel to them, as tokens confirmed the most profits during recovery. Coins such as Solana and MATIC returned double-digit losses of 18.48% and 16.01% on the final day.
The price of Ethereum has held up very well, but the big losses remain noticeable on all DeFi tokens. Major smart contract networks have declined 7.16% in the last 7 days and 7.19% in the last 24 hours.
Others who recorded losses in the last 7 days were Polkadot at 12.32%, Avalanche at 12.06%, and NEAR Protocol at 8.24%.
Featured image from Watcher Guru, chart from TradingView.com
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