The total decentralized finance (DeFi) TVL has been on the decline since the market losses began. The market, which had risen as high as $250 billion in TVL at one point, has now lost the majority of that value. With the crypto market recovery last week, it looked as if the DeFi market was beginning to see some last at the end of the tunnel. However, that has proven to not be the case, given that the TVL has taken a dip once more.
The month of July had seen the DeFi market add more than $10 billion to its TVL. Starting out at $72 billion, it had grown to almost $87 billion by the middle of the month. This recovery was attributed to the gains in the market from leading networks such as Ethereum and Polygon. With this recovery had also come some much-needed faith that saw more tokens moved into the DeFi space. That is until the weekend when the market had begun to shed all of its gains.
Related Reading | Bitcoin Addresses In Profit Falls Below 50%
Ethereum, which had blown past $1,600 at the height of the recent rally, had promptly begun to decline, bringing the TVL down with it. As it now stands, the DeFi TVL is down $5 billion in the last two. This accounts for a 5.81% decline in the DeFi market.
In the last 24 hours, data from DeFiLlama shows that the DeFi TVL is down 4.49% as of the time of this writing. The top networks are experiencing declines on this scale, too, such as Ethereum being down 4.86% and the BSC network losing 3.78% in the last day.
The DeFi TVL has not been the only thing to take a hit. In fact, the decline in this aspect of the market has been a direct result of the decline recorded in the DeFi tokens. These tokens had been at the forefront of the relief rally, following in the footsteps of the market leader Ethereum.
Related Reading | FTX Token Trading Volume Shows Ethereum Whales Are Becoming Bullish
However, just as the tokens had seen the most gains during the recovery, the retracement has been brutal for them. Coins such as Solana and MATIC have returned double-digit losses in the last day with 18.48% ad 16.01%.
The large losses have remained prominent across all DeFi tokens, although Ethereum’s price has held up quite nicely. The leading smart contract network is down 7.16% in the last 7 days and 7.19% in the last 24 hours.
Others who have recorded losses have been Polkadot with 12.32%, Avalanche with 12.06%, and NEAR Protocol with 8.24% in the last 7 days.
Featured image from Watcher Guru, chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
HoldCoin is a new play-to-earn game that challenges players to hold a button to earn in-game currency, differentiating itself from competitors with its endurance-based gameplay. However, the project raises concerns due to its anonymous team, suspicious social media activity, and potential red flags about its legitimacy and airdrop promises.
JoyTech entrepreneur Avi Schiffmann, known for creating a COVID-19 tracker in 2020, has introduced a $99 AI-powered necklace to combat loneliness. But is it bordering on creepy and concerning, or is it a stroke of creative genius?
KikyoShiba Eternity’s Web3 launch on Shibarium requires LEASH token staking for exclusive access. The game's integration with Shibarium will burn SHIB tokens, potentially increasing SHIB's value and driving up its price.
WeatherlyMovement, a network of modular move-based blockchains, has launched its public testnet, Parthenon, alongside its integration with Polygon's AggLayer. Movement Labs reports $160M in committed TVL ahead of the mainnet launch later this year. Will you join the movement?
CatherineNeiro is a memecoin inspired by a rescue dog and launched on both Solana and Ethereum. The Solana-based Neiro faced suspicions of a rug pull after its developer made $2.85 million, while the Ethereum version has seen rapid growth but also raised concerns about insider control.
JoyPresidential hopeful Donald Trump recently promoted limited edition Bitcoin-themed sneakers called the "Crypto President High Tops". This release is part of Trump's strategy to appeal to a diverse voter base, including the sneakerhead community.
KikyoAlex Svanevik, CEO of Nansen, launched a Solana memecoin named IQ, which soared to a $6 million market cap before falling to around $1 million. The ease of creating memecoins through platforms like MakeNowMeme and Pump.Fun has led to many scams, emphasising the need for cautious investment.
AnaisChakra, a Bitcoin restaking protocol based on ZK proofs, has teamed up with Binance Web3 Wallet to bring you a Bitcoin pre-staking campaign for Babylon’s Mainnet launch with pre-staking ending on 7 August.
CatherineBinance Labs has invested in Particle Network, a Layer-1 blockchain platform aimed at unifying the fragmented Web3 landscape. With features like universal accounts and liquidity, Particle Network simplifies blockchain interactions, enhancing accessibility and user experience.
WeatherlyNotcoin has launched a new story-driven Telegram game called “Lost Dogs” that will last for 6 weeks. Players vote daily on decisions that shape the story, earn both NOT tokens and the in-game currency, WOOF. So what is your choice?
Kikyo