{"id":4299,"date":"2022-05-20T21:12:45","date_gmt":"2022-05-20T21:12:45","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=4299"},"modified":"2022-05-20T21:12:47","modified_gmt":"2022-05-20T21:12:47","slug":"the-great-defi-unwind-sees-total-value-locked-plummet-to-10-month-lows","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4299","title":{"rendered":"&#8216;The Great DeFi unwind&#8217; sees Total Value Locked plummet to 10-month lows"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Crypto YouTuber Lark Davis tweeted that \u2018the great DeFi unwind\u2019 is upon us.<\/p>\n<p lang=\"en\" dir=\"ltr\">The great #defi unwind saw us go from 230 billion at the start of April, to 110 billion sitting in defi now! Life comes at you fast in #crypto! pic.twitter.com\/hhojS738SK<\/p>\n<p>\u2014 Lark Davis (@TheCryptoLark) May 20, 2022<\/p>\n<p>Davis points out that the Total Value Locked (TVL) in DeFi protocols was $230 billion at the start of April. But outflows since then have tanked this figure to $110 billion \u2013 representing a 48% decline in TVL.<\/p>\n<p>The numbers are further confirmation that crypto winter is here. But is it as bad as the numbers depict?<\/p>\n<h2>Is DeFi losing its shine?<\/h2>\n<p>Decentralized Finance (DeFi) is a broad term to describe peer-to-peer financial services via blockchain protocols.<\/p>\n<p>Ethereum, which has the first-mover advantage, is home to the most value-locked on-chain. Currently, it accounts for 65% (or $72 billion) of the TVL.<\/p>\n<p>DeFi offers an alternative to banking, making it a critical use case for blockchain and cryptocurrency. Through DeFi, users can earn interest, borrow, lend, buy insurance, trade assets, and more, all without the need for a third party overseeing the process.<\/p>\n<p>However, according to Forbes, the DeFi space has become a breeding ground for scammers in recent times. Financial Researcher Rufas Kamau points out that templates exist, enabling anyone, even those without the appropriate knowledge and expertise, to launch a project. And, given the decentralized and borderless nature of DeFi, there is also a lack of accountability.<\/p>\n<p>Accounts of DeFi fraud, not forgetting instances involving vulnerable protocols, such as in the case of Terra UST\u2019s fragile algorithmic pegging system, have undoubtedly unnerved users.<\/p>\n<p>It\u2019s probable that investors flipping risk-off has extended to DeFi, which some perceive as the riskiest bet in cryptocurrency.<\/p>\n<h2>Are the events at Terra solely responsible?<\/h2>\n<p>Terra (LUNA) is the biggest one-month loser, having lost 99.5% of its TVL value.<\/p>\n<p>Before the Terra ecosystem implosion, its TVL came in at $29.17 billion. Now, the total value locked is just $156 million.<\/p>\n<p>Source: defillama.com<\/p>\n<p>At the start of April, Terra\u2019s TVL was $28.7 billion. By subtracting this from total outflows \u2014 and removing the anomalous event \u2014 capital leaving DeFi since April still amounts to $91 billion.<\/p>\n<p>The only conclusion to draw is that DeFi is losing its shine with investors.<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/the-great-defi-unwind-sees-total-value-locked-plummet-to-10-month-lows\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto YouTuber Lark Davis tweeted that \u2018the great DeFi unwind\u2019 is upon us. The great #defi unwind saw us go from 230 billion at the start of April, to 110 billion sitting in defi now! Life comes at you fast in #crypto! pic.twitter.com\/hhojS738SK \u2014 Lark Davis (@TheCryptoLark) May 20, 2022 Davis points out that the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-4299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4299"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4299\/revisions"}],"predecessor-version":[{"id":4301,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4299\/revisions\/4301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4300"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}