DeFi TVL Slumps to 20-Month Low As Crypto Market Bleeds

The total value locked (TVL) for the DeFi market has dropped significantly, reaching a 20-month low. This is coming as the cryptocurrency market bleeds following the FTX collapse.

Over the past 24 hours, the DeFi market’s total value locked (TVL) has decreased by over 10%. The TVL now stands at $44.36 billion, which was last reached in March 2021. The 20-month low is another indication that the crypto market is struggling as a result of FTX’s impending demise.

In terms of year-over-year and year-to-date comparisons, TVL has decreased by almost 75% from its all-time high. The DeFi market, which has long been a strong foundation in the industry, has suffered a severe setback.

These levels are unlikely to persist for very long because the DeFi market typically grows and is extremely robust. Additionally, it is regarded as one of the more creative and practical applications of decentralized technology and has caught the interest of numerous illustrious organizations. Despite this, each ecosystem is failing, with Ethereum, Binance Smart Chain, and many others suffering severe losses.

With a TVL of $25.36 billion, Ethereum’s value has decreased by 75% year to date and by the same amount from its peak. With a 14.85% market share, MakerDAO presently leads the ETH liquid staking market, followed by Lido. BSC’s TVL currently stands at $5.13 billion and has been largely unchanged for a few months.

Tron’s DeFi Metrics an Exception from the Norm

One of the exceptions is Tron, whose value only decreased somewhat in comparison. Its TVL currently stands at $4.57 billion, an increase of 7.94% over the previous day. This amount is not far from an all-time high of about $7 billion.

In Q3, TRON experienced a 480% growth in USD holders and a 71% increase in TVL holders. This was before the FTX event, but Tron doesn’t seem to be as negatively impacted now. According to DappRadar, DeFi wallets also experienced significant growth in October, with the number of active wallets exceeding 500,000 during the month.

🔥”The two most significant highlights: 480.4% increase in the number of holders of #USDD and the 71% increase in the Total Value Locked of #TRX.”

👀Learn more about @MessariCrypto‘s reports on the state of #TRON Ecosystem & #USDD in Q3. https://t.co/FY9Kp6Vtjr

— TRON DAO (@trondao) November 9, 2022