As was somewhat to be expected during this ongoing bear market, the TVL for Ethereum DeFi keeps decreasing. It briefly appeared as if a new surge would occur, but that momentum has ended. Dipping below $50 billion is almost a foregone conclusion at this point.
Ethereum DeFi’s TVL Drops Again
When all crypto markets remain primarily bearish, there is little to get excited about these days. Prices keep dropping across the board despite showing signs of a rebound earlier this week. During the weekend, all markets often lose value, and this week is no different so far. While the losses are minimal, there is a visible downtrend across all markets.
As the value of all assets keeps drifting lower, so too will the Total Value Locked in staking pools, liquidity pools, and DeFi protocols. Per DeFiPulse, the current TV for Ethereum DeFi is heading to $50 billion again. Although the metric sustains itself slightly above that level, it wouldn’t be the first dip below $50 billion in recent weeks either.
More specifically, there have been two such dips since late May 2021. Despite the Ethereum DeFi TVL bouncing back shortly after, it has not sustained a stable level in the slightest. The days of nearing $90 billion in TVL may not return anytime soon at this rate. There is too much bearish pressure on the markets, making investors lose value by locking their holdings into protocols. A bigger exodus of TVL is not unlikely over the coming days.
Big Losses For Some Projects
Combined with people pulling funds out of DeFi contracts, the ongoing price decline can trigger a cascading effect fairly quickly. Several Ethereum DeFi ventures note a net TVL loss of over 9% in the past 24 hours. The biggest deficit falls on Premia, which saw 42,98% of its TVL disappear. CVI and Synthetix, two other derivatives platforms, saw declines of 17% and 11%, respectively.
Other platforms to note a decrease in TVL include Balancer, UMA, Auctus, Aave, Augur, and so forth. A lamentable turn of events, although one that is anything but surprising at this point. When markets remain under bearish pressure, it is complicated to escape this vortex of negativity.
Thankfully, some projects note an increase in TVL under the current circumstances. However, none of them are big names, as several of them have a TVL of under $1 million. These changes should be taken with a few grains of salt, as a percentage-based change is easier to pull off with the TVL being low, to begin with. It is an interesting development, yet it is evident all of the “big players” are not faring too well right now.