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DeFi and Credit Risk
Defi TVL Plunges More Than 50% Since April 3, Terra Implosion Impacts Defi Economy the Most
At $112.29 billion, today's defi total is just shy of the $100 billion milestone. Last week's Terra upheaval wiped out the majority of the TVL held in decentralized finance protocols, causing the TVL to fall to its lowest level since April 3.
42 days ago, on April 3, Terra blockchain possessed $30.45 billion, or 13.15 percent of the $231 billion total, in addition to demanding a TVL of $231 billion. With a TVL of $500.38 million, Terra has fallen from second place to 14th place since defi.
Ethereum controls 63.63 percent of the TVL's defi, or $71.09 billion, out of Sunday's $112.29 billion. A total of 7.71 percent of the $112.29 billion in defi TVL is held on Binance Smart Chain (BSC), making up $8.62 billion in total.
Defi protocol Makerdao has overtaken Curve in terms of TVL size this week, making it the second-largest defi protocol. Makerdao's $10.56 billion TVL is 9.40 percent larger than Curve's $8.76 billion.
As of April 3, when its TVL was $21.17 billion, Curve's TVL is significantly different from where it is today. Significant decreases in TVL have occurred in the past week for the top 28 defi protocols. Curve is down 49.18 percent this week as well, despite Makerdao's 13.73 percent week-over-week advantage. This week, Lido has lost 46.37 percent of its value, while Aave, a defi app, has lost 21.94 percent of its value.
Anchor, which was the third-largest defi app in terms of TVL a week ago, has fallen to the 58th spot after losing 97.76 percent this week. Today, Anchor has a loan portfolio worth $309.78 million, according to data.
In terms of TVL magnitude, 17 defi protocols have at least $1 billion or more. Ethereum leads the pack with $419 billion in smart contract tokens today. Terra is now ranked 18th in the market for smart contract platform tokens in terms of market value.
Carnage was most devastating to decentralized finance, even though Terra's problems had an impact on the entire crypto-world. In less than a week, more than $100 billion was withdrawn from defi's balance sheet.
Trust in the defi ecosystem is likely to take some time before it is restored and the $100 billion that was lost is returned. Since last week, Ethereum has seen the greatest gain in its supremacy over the other defi networks. Even still, Ethereum dropped 31.53 percent of its value in the last seven days.
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