TVL, the largest smart contract network Ethereum’s total value locked in the DeFi sector, has dropped 76% since the start of 2022. This was the most concrete indicator of the damage the bear market caused to DeFi projects.
Crypto research firm Arcane Research has publicly released its new report on the DeFi industry. According to the report, Ethereum’s TVL value was $95 billion at the beginning of the year, while this figure has decreased to $23 billion today. The biggest reason for this was that investors left DeFi platforms due to rising interest rates and the falling crypto market.
Despite the decline in TVL value, ETH’s share in the DeFi sector increased by 2%.
The period when Ethereum gains market share coincides with the Terra bankruptcy. Terra (LUNA) collapsed after the UST lost its stability to the dollar due to some problems in the project.
Although Arcane Research experts stated how bad the year was in the sector, they mentioned the latest events in crypto and gave the following words:
“Chaotic events in crypto credit markets and centralized exchanges have once again demonstrated the importance of transparency in the DeFi industry.”
The research report also included attacks on DeFi projects. Experts determined that a total of 3 billion dollars was stolen in the decentralized finance sector in 2022.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!