Trust in Decentralized Finance Low as it Loses $100 Billion

The impact of the TerraUSD’s demise on the world of decentralized finance (DeFi) continues to highlight just how fragile the entire ecosystem is. There have been a lot of changes in the DeFi world since the algorithmic stablecoin imploded. One of the things that have proven to be disastrous for decentralized finance is the fact that the total value locked in space has plunged from a whopping $231 billion to $112.29 billion. This is a loss of about 51.38% in just 42 days.

DeFi’s TVL Falls by More than 50%

The total value locked in the decentralized finance ecosystem has reached $112.29 billion. It has been dropping over the last month after it had reached an all-time high value back on April 3rd. When Terra collapsed in the previous week, it ended up wiping out most of the total value locked in the numerous protocols part of the DeFi ecosystem.

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On April 3rd, the TVL in the DeFi space had been $231 billion and about $30.45 billion was locked on the Terra blockchain. This was around 13.15% of the aggregate TVL. At that point, Terra actually had the second-largest total value locked, but now the blockchain has dropped to the 14th position, as there is only $500.38 million.

Of the $112.29 billion TVL on Sunday, the top protocol in DeFi is currently Ethereum, as it possesses 63.63% of the total i.e. $71.90 billion. The second place belongs to the Binance Smart Chain (BSC), which has a total value locked of about $8.62 billion and this makes it 7.71%.

Curve Loses its DeFi Dominance

One of the major changes that have occurred in the decentralized finance ecosystem this week is that the Curve protocol has lost its dominance. In terms of TVL, the largest DeFi protocol is now Makerdao. It has a TVL of about $10.56 billion, which is around 9.46%, while Curve’s TVL has come down to $8.76 billion.

The current TVL of Curve is quite different than what it had been back on April 3rd. Almost 42 days ago, the TVL for the protocol was valued at $21.17 billion. However, the last week alone has seen the TVL of various DeFi protocols experience significant reductions. Even though Makerdao has taken the top spot, it should be noted that it has still declined by 13.73% this week. As far as the Curve is concerned, it has plummeted by 49.18%. Lido and Aave have also seen reductions in their TVL by 46.37% and 21.94%, respectively.

One week ago, Anchor was the third-largest application in the DeFi space in terms of TVL. However, not it has come down to the 58th position, as it lost about 97.76%. According to statistics, the lending protocol’s TVL was around $309.78 million. There are 17 protocols in DeFithat have a TVL of about $1 billion or more.

Even though the TerraUSD disaster had an impact on the whole crypto economy, it was the decentralized finance space that suffered the most carnage.