Total value locked in DeFi drops 70% in 2022 to below $100 billion

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Total value locked in DeFi drops 70% in 2022 to below $100 billion

After the cryp­tocur­ren­cy sec­tor record­ed a dra­mat­ic increase in the total val­ue locked (TVL) across all decen­tral­ized finance (DeFi) plat­forms in 2021 thanks to attract­ing major cap­i­tal, the tables seem to be turn­ing in 2022.

Specif­i­cal­ly, the TVL record­ed in Decem­ber 2021 stood at a whop­ping $303.8 bil­lion, only to drop to $96.3 bil­lion in Sep­tem­ber 2022 – a loss of 68.3%, accord­ing to the data pub­lished by cryp­to mar­ket data aggre­ga­tion and ana­lyt­ics plat­form Cryp­toRank on Sep­tem­ber 26.

Total val­ue locked in DeFi. Source: CryptoRank.io

As per this data, the TVL in DeFi decreased by 10% in the last 30 days, from $106 bil­lion where it stood a month ago, to the cur­rent $96.3 bil­lion. Notably, the dom­i­nance of Ethereum (ETH) in the DeFi space con­tin­ues, as it accounts for $56.3 bil­lion or 58.46% of the entire DeFi TVL.

Ethereum is fol­lowed by Tron (TRX) with $11.9 bil­lion in TVL, BNB Chain (BNB) with $8.6 bil­lion, Avalanche (AVAX) at $3.5 bil­lion, and Solana (SOL) with $2.3 bil­lion. Inter­est­ing­ly, in May 2022, Ethereum’s TVL in DeFi shrank 35% amid bear­ish mar­kets, where­as Tron’s grew by 47%.

Overturning the 2021 gains

As a reminder, the TVL in DeFi surged over 1,200% in 2021, with Ethereum tak­ing up most of the stak­ing val­ue of the entire DeFi sec­tor at 62%, a slight­ly high­er per­cent­age than present­ly, as Fin­bold report­ed back in Decem­ber 2021.

The TVL rep­re­sents the over­all val­ue of funds locked col­lec­tive­ly by users into DeFi projects and is one of the essen­tial indi­ca­tors of the over­all growth rate in this indus­try – its amount rely­ing great­ly on the under­ly­ing assets’ prices as well as the pop­u­lar­i­ty of DeFi apps.

Dis­claimer: The con­tent on this site should not be con­sid­ered invest­ment advice. Invest­ing is spec­u­la­tive. When invest­ing, your cap­i­tal is at risk. 



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