DeFi Tokens And Smart Contracts Are In Decline Due To The Risk Of Crypto Winter

While the capitalization of the crypto economy has continued to plummet, sliding below $1.2 trillion, the value of DeFi protocols and smart contract tokens has suffered greatly. Statistics show that the total value locked (TVL) in the DeFi space has dropped by 15.9% since May 18, to less than $100 billion, and the total value of all smart contract tokens has lost 8.2% in the last 24 hours.

DeFi indicators indicate that the world of decentralized finance has stagnated since the collapse of UST and LUNA. 24 days ago, on May 18, the total value locked (TVL) was around $113 billion, and today the indicator is down more than 15%, hovering above $95 billion.

Indicators over the past 30 days indicate that, of the top five DeFi protocols with TVL, four have shown strong bearish signals.

MakerDao takes the top spot in terms of TVL size with $8.49 billion in locked assets. However, Makerdao’s TVL has dropped as much as 18.63% in the past 30 days.

TVL for Curve, Aave, and Lido also fell from 14.22% to 28.98% over the past month, while Uniswap decreased 6.58% over the same time period.

Defillama.com figures show that Ethereum is the leading chain in the DeFi sector with a total locked value of $60.55 billion. Coins held on ETH-based protocols represent 64.12% of the total TVL market. BNB Chain is the second largest chain with a TVL of $7.6 billion and Tron is in third place with $5.81 billion.

In addition, the top 5 smart contract protocol tokens have lost significant value, with the exception of Cardano (ADA). In which, Ethereum (ETH) lost 18.05% of its value, Binance Coin (BNB) lost 13.59%, Solana (SOL) lost 15.53%, and Polkadot (DOT) lost 17.95%, however, Cardano ( ADA) managed to gain 1.6% last week.

At the present time, the leading smart contract platform token by market capitalization has a total value of $327 billion. One of the notable smart contract tokens last week was Chainlink as LINK surged as much as 8% amid a market downturn. Meanwhile, the market share of individual smart contract tokens has evaporated from around 2% to over 30% in the past seven days.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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