DeFi crypto market: TVL declining
The post DeFi crypto market: TVL declining appeared on BitcoinEthereumNews.com. In this article we look at the situation of the crypto market, particularly for the DeFi sector, whose TVL (Total Value Locked) has been declining over the past 6 months after a 2023 start that had raised hopes for an upward recovery. As of April 2023, TVL locked in the various decentralized protocols had touched the $53 billion mark while now it shares a value of $38.2 billion for a retrenchment of about 28% . Totally opposite trend, on the other hand, for Ethereum’s layer-2 niche (rollup and ZK), whose TVL has doubled since the beginning of 2023 thanks mainly to the success recorded by Arbitrum, Optimism, Base and ZkSync Era. Let’s look at all the details below Crypto DeFi: TVL touches 2023 lows after a sharp decline over the past 6 months After a crackling start to 2023 for the crypto market with the DeFi sector seeing some of the TVL lost during the bear market of 2022 recouped, here comes the pessimism again. In the past 6 months, the total value locked within decentralized finance protocols has in fact declined by about 28% , from $53 billion in mid-April to the current $38.2 billion, coming in at one of the lowest figures of the entire current year If we calculate the trend on a yearly basis, hence taking October 2022 data as a reference, we notice that the decrease reaches the 30% mark. This is a real shame because from January 2023 until April the TVL of the DeFi market had added about $15 billion, raising hopes for a recovery after more than $126 billion was lost in 2022. No dice instead: investors, especially institutional investors, seem to be hesitant to pour capital into a niche market like crypto, where speculation reigns supreme. Rather, much of the capital…
The post DeFi crypto market: TVL declining appeared on BitcoinEthereumNews.com.
In this article we look at the situation of the crypto market, particularly for the DeFi sector, whose TVL (Total Value Locked) has been declining over the past 6 months after a 2023 start that had raised hopes for an upward recovery. As of April 2023, TVL locked in the various decentralized protocols had touched the $53 billion mark while now it shares a value of $38.2 billion for a retrenchment of about 28% . Totally opposite trend, on the other hand, for Ethereum’s layer-2 niche (rollup and ZK), whose TVL has doubled since the beginning of 2023 thanks mainly to the success recorded by Arbitrum, Optimism, Base and ZkSync Era. Let’s look at all the details below Crypto DeFi: TVL touches 2023 lows after a sharp decline over the past 6 months After a crackling start to 2023 for the crypto market with the DeFi sector seeing some of the TVL lost during the bear market of 2022 recouped, here comes the pessimism again. In the past 6 months, the total value locked within decentralized finance protocols has in fact declined by about 28% , from $53 billion in mid-April to the current $38.2 billion, coming in at one of the lowest figures of the entire current year If we calculate the trend on a yearly basis, hence taking October 2022 data as a reference, we notice that the decrease reaches the 30% mark. This is a real shame because from January 2023 until April the TVL of the DeFi market had added about $15 billion, raising hopes for a recovery after more than $126 billion was lost in 2022. No dice instead: investors, especially institutional investors, seem to be hesitant to pour capital into a niche market like crypto, where speculation reigns supreme. Rather, much of the capital…
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