As the crypto economy has dropped lower in value against the US dollar, sliding to $1.2 trillion, the value of decentralized finance (DeFi) protocols and smart contract tokens has suffered a significant decline. Statistics show that the total value locked (TVL) in DeFi has dropped 7.96% since May 18, to roughly $104 billion, and the combined value of all the smart contract tokens lost 8.2% over the last 24 hours.
DeFi metrics indicate that the world of decentralized finance has been stagnant since the fall of Terra’s UST and LUNA. 24 days ago, on May 18, the TVL in DeFi was around $113 billion — it currently is 7.96% lower, just above $104 billion.
In addition, 30-day metrics indicate that out of the top five DeFi protocols in terms of TVL size, four application TVL metrics have dropped significantly. Makerdao commands the top position in DeFi in terms of TVL size with $8.82 billion locked. However, Makerdao’s TVL has plunged 13.23% lower over the last 30 days.
Curve’s, Aave’s, and Lido’s TVL also shed between 7.21% and 19.74% over the past month, while Uniswap gained 1.92% over the last 30 days. The DeFi protocol Nord Finance was the month’s biggest loser, as its TVL dropped by more than 71% last month.
According to DefiLlama data, Ethereum is the top chain in DeFi with $63.23 billion TVL. Money held on ETH-based DeFi protocols represents 60.97% of all the value locked in DeFi today. Binance Smart Chain (BSC) is the second-largest chain with $7.78 billion TVL, and Tron is the third-largest with $5.95 billion.
Furthermore, the top-5 smart contract protocol tokens have lost significant value over the last week, except for Cardano (ADA). Ethereum (ETH) lost 12.4% in value this week, Binance Сoin (BNB) shed 7.9%, Solana (SOL) slipped by 9.1%, Polkadot (DOT) lost 12.1%, but Cardano (ADA) managed to gain 1.6% this past week.
Currently, the top smart contract platform coins by market capitalization are collectively worth $327 billion. One notable smart contract token gainer was Chainlink (LINK), as it managed to rise like ADA last week but jumped 8% higher against the US dollar. A lion’s share of smart contract tokens lost between 2% and more than 30% over the last 7 days.
Meanwhile, decentralized exchanges (DEXs), one of the largest contributors to DeFi growth, reported more than $1 trillion in trade volume last year. Many DeFi projects look towards the Gulf countries as a decentralized finance hub.