Crypto Market Slides as Total Value Locked in Defi Falls Below $50 Billion Mark
The value of the crypto market has started to slide again after a bullish run-up over the last seven weeks. The total value locked (TVL) in decentralized finance (defi) has slipped below the $50 billion mark to $49.8 billion. The TVL in defi has fallen by 2.24% over the last 24 hours. During that same timeframe, the top smart contract token economy lost 3.7% against the U.S. dollar.
Smart Contract Token Economy and Value Locked in Defi Dip
Cryptocurrency prices are down this weekend, affecting the values of smart contract tokens and the total value locked in defi. At the time of writing, the smart contract token economy is valued at $326.11 billion, but has dropped 3.7% during the last day. Over the last week, ethereum (ETH) has lost 5.6% against the greenback, and polygon (MATIC) has dropped 17.6% in value.
Currently, the TVL in defi today is $49.8 billion, with 18.03% of that value residing in the Lido liquid staking protocol. The value locked in Lido today is around $8.75 billion, up 8.43% over the last month. Makerdao, Curve, Aave, Convex Finance, Uniswap, Justlend, Pancakeswap, Instadapp, and Compound Finance follow Lido in order. Besides Lido’s 8.43% rise, Uniswap had the second-largest 30-day increase with 6.43%.
As of Feb. 25, 2023, Ethereum has the largest TVL out of all the blockchains, dominating by 58.45%. Tron follows with 10.64%, Binance Smart Chain (BSC) with 10.01%, Arbitrum with 3.89%, and Polygon with 2.36%. All five of these blockchains capture 85.35% of the aggregate value locked in decentralized finance on Saturday. Out of the top ten blockchains in terms of TVL size, only Arbitrum saw increases, with the TVL rising 9.39% last week and 60.87% over the last month.
Among the top ten smart contract coins, Polygon had the largest drop this week, at 17.6%. In terms of the entire smart contract token economy, the biggest gainer this week was stacks (STX), which rose 102.5%. The second-biggest smart contract coin gainer was kylin network (KYL), which rose 69.1% against the greenback. The two biggest losers over the last seven days in terms of smart contract tokens were astar (ASTR), which lost 26.2%, and shiden network, which shed 23.9% this week.
What do you think caused the recent slide in cryptocurrency prices, and how do you think it will affect the future of decentralized finance markets? Share your thoughts in the comments section below.