DeFi Total Value Locked Has Tripled This Year Despite Recent Bitcoin, Ethereum-Led Crypto Carnage

The total value locked or TVL in Decentralized Finance or DeFi has fallen from $79.46 billion a week ago to $50.6 billion as of press time in the early hours of Monday, but it is triple of where it stood when the year began.

What Happened: TVL has spiked 220.35% from $15.80 billion since the year began to press time. This is a three-fold increase in that span of time.

Maker (MKR) was the token with the highest TVL at $7.6 billion, followed by Compound (COMP) and AAVE (AAVE) at $6.99 billion and $6.9 billion respectively. 

See Also: How to Buy Maker (MKR)

MAKER has spiked 9.08% in a 24-hour period leading up to press time to $2,965.08. Over a seven-day trailing period, the DeFi-oriented cryptocurrency has fallen 32.27%.

Against Bitcoin (BTC) and Ethereum (ETH), Maker has spiked 16.05% and 18.25%, respectively. 

The apex cryptocurrency, BTC, traded 4.72% lower at $35,224.23 at press time.

Why It Matters: TVL is a measure of the total value of assets that are locked into the DeFi ecosystem. The metric does not track the amount of outstanding loans but instead provides information on the total amount of underlying supply secured by either a specific application or DeFi in its entirety.

In the recent cryptocurrency crash triggered by developments in China, several DeFi coins have fallen considerably.

Uniswap (UNI), AAVE, and PancakeSwap (CAKE) are all down 11.43%, 9.36%, and 8.21% respectively to $17.76, $303.23, and $13.54, while COMP traded lower by 3.81% at $356.68 over a 24-hour period at press time.

Over a seven-day trailing period, these coins have suffered even sharper declines, UNI is down 46.70%, AAVE is lower by 39.73%, and CAKE in the red by 46.97%. COMP traded 43.49% over a week’s time.

A large portion of the value locked in DeFi protocols is due to the price of native tokens along with deposits of BTC and ETH, but the recent fall in the markets has contributed to the decline in total TVL, reported Cointelegraph.

See Also: DeFi: Applications And Expectations For 2021

ETH has fallen 35.28% on a seven-day trailing period, the second-largest cryptocurrency by market cap traded 4.45% lower at $2,135.80 over a 24-hour period leading up to press time.

Read Next: Apple, Other FAANG Stocks Can Now Be Traded In DeFi Alongside Tesla: What You Should Know

Photo by Jernej Furman on Flickr