Decentralized Finance Protocols Flounder as Value Locked in Defi Shed More Than 25% Since FTX Collapsed

On December 12, 2022, the total value locked (TVL) in decentralized finance (defi) has been range bound after falling 25.5% from $55.94 billion on Nov. 5, to today’s $41.67 billion. Moreover, during the past 12 months, the TVL in defi dropped 82.56% from roughly $239 billion in Dec. 2021, to today’s aggregate.

Smart Contract Token Economy and Defi Sector Struggle Following Last Month’s FTX Fiasco

Decentralized finance (defi) has suffered a great deal from the FTX fiasco as the total value locked (TVL) in defi has shed 25.5% in value in 37 days. At the time of writing, the TVL in defi today is an estimated $41.67 billion and the TVL has declined 1.63% in the past 24 hours.

The defi protocol Makerdao commands the largest TVL today with $6.26 billion in value locked, and a dominance rating of 15.02% against the rest of the defi protocols’ TVL standings. Defillama.com metrics indicate that during the course of the last month, Makerdao’s TVL shrunk by 8.41%.

The TVL in defi today on Dec. 12, 2022, is $41.67 billion, and the value locked 37 days ago was around $55.94 billion or 25.5% higher.

Following Makerdao, the top defi protocols in terms of TVL size include Lido, Aave, Curve, Uniswap, Convex Finance, Justlend, Pancakeswap, Compound Finance, and Instadapp respectively. Out of the entire top ten, Aave saw the largest monthly loss after it shed 15.18% in value in 30 days.

On the other hand, Convex Finance’s TVL metrics increased by 43.87% during the last month. Ethereum holds the most value locked out of all the blockchains with $23.98 billion or 57.55% of the aggregate locked in defi today.

Binance Smart Chain (BSC) has the second-largest TVL on Dec. 12, with an estimated $4.99 billion or 12.04% of the total. In terms of TVL size, Ethereum and BSC are followed by the blockchain networks Tron, Arbitrum, Polygon, Avalanche, Optimism, Fantom, Cronos, and Solana respectively.

The total seven-day volume, across all the cross-chain bridges on Dec. 12, is an estimated $810.67 million. The entire smart contract platform token economy today is $261 billion and it’s down 2.3% during the last 24 hours.

During the last 62 days or since Oct. 11, 2022, the smart contract platform token economy dropped 7.77% against the U.S. dollar from $283 billion to today’s $261 billion. At the time of writing, the largest smart contract crypto asset, ethereum (ETH), is down 1.6% against the greenback during the past 24 hours.