In the past few days, the Total Value Locked (TVL) of the overall decentralized finance (DeFi) sector has dropped on a large scale. Due to the constant fall, the overall TVL of the DeFi sector has dropped to $59.18 billion.
Even at the time of writing, the TVL of the DeFi sector is hovering around $59 billion. This is because of the constant downfall being realized throughout the cryptocurrency industry.
The decentralized finance sector has found itself in an ongoing downtrend. The cryptocurrency industry has been facing a constant downfall and the situation has gotten worse since the beginning of August.
It is almost a month since the cryptocurrency sector, especially, the decentralized finance sector has been facing a downtrend.
DeFi TVL at the Beginning of August
The total value locked for the overall decentralized finance sector at the beginning of August was $64.27 billion. The first half of the year 2022 was filled with downtrends and many hacks caused a huge dent in the entire DeFi sector.
Multiple DeFi protocols were hacked and exploits took place that caused the overall valuation of the DeFi sector to take a huge hit.
As a result of the hacks, the overall TVL of DeFi dipped 68% compared to the TVL recorded at the beginning of 2022.
Current Situation of MakerDAO
The current total value locked for MakerDAO currently stands at $7.79 billion. It represents 13.16% of the overall TVL of the decentralized finance sector.
Being one of the top protocols in the decentralized finance sector, the investors have taken a closer look at the performance of MakerDAO.
They have assessed how the bearish market has impacted the MakerDAO protocol in the running month.
It was late 2021 when the decentralized finance sector boomed. It was at that time when the MakerDAO protocol was launched with a TVL of $17.5 billion.
However, as the DeFi sector declined in the year 2022, a 55% drop in the TVL of MakerDAO has been recorded in the first six months.
The following month, as the overall crypto-verse resurged, the TVL for DeFi rose by 12% ($8.63 billion). Since then, the TVL of MakerDAO has continued dropping, and in the month of August, it lost a 10% locked value.
MakerDAO’s July Performance
Despite recording a 12% surge in the month of July, MakerDAO had recorded an 8% decline in the same month. However, the dip in August has been wider than the month of July.
This means that despite recording a recovery, the total value locked for MakerDAO has continued falling.
The 180-day assessment shows that the TVL for MakerDAO has plunged 52.9%.