CandleFocus

Complete analysis of the TVL crash in DeFi: Ethereum impacts negatively

Complete analysis of the TVL crash in DeFi: Ethereum impacts negatively
The total value locked (TVL) of decentralized finance (DeFi) has dropped below $90 billion, marking a 35% decrease from its peak of $140 billion in December. The decline in TVL is primarily attributed to the drop in Ethereum's price, which dominates the DeFi market. The TVL of DeFi protocols is mostly concentrated on Ethereum, accounting for 51% of the total value. Solana and Bitcoin hold the second and third positions, respectively. The price of Ethereum has experienced significant declines, dropping from its peak of $4,100 in December to below $1,900. This significant fall in ETH's price has affected the TVL of DeFi, as many assets locked in DeFi are stablecoins that do not lose value over time. The decline in DeFi and Ethereum's price is seen as a consequence of the bursting of the mini-bubble that occurred after the electoral victory of Donald Trump. The situation for altcoins, such as Ethereum and Solana, remains challenging, suggesting that further losses may occur.

Related News