The Collapse of FTX Hits the DeFi Industry: How Much is the Damage?

FTX associated with withersaw one of the biggest declines. Despite this, some investors and project founders are still optimistic.

Decentralized finance (DeFi) Binance’He’s suffering from the inconvenience of giving up on purchasing FTX. Investors are pulling their cash from projects as uncertainty remains over the future of one of the largest crypto exchanges.

The Collapse of FTX Leads to a $10 Billion Drop in Decentralized Finance (DeFi)

Total cash value locked in DeFi has dropped more than 12% in the past day, after hovering around $50 billion to $60 billion since June, according to data tracker DeFi Llama. This figure was over $180 billion last December.

This drop, algorithmic stablecoin TerraUSDIt came just months after .

At the center of the recent decline in decentralized finance, the thought of Binance’s potential acquisition of competitor FTX, which has since dropped sharply under the influence of its abandonment. FTT and wither takes an important place.

The combined value of all cryptocurrencies on the Solana Blockchain and projects built on Solana has dropped more than 47% in the past 24 hours. Its native token, SOL, lost nearly 40% on Wednesday.

Investors are unsure about the firm’s future. Both Alameda and FTX’s venture arm have also invested in several projects built on Solana.

However, some investors and project owners are still on the optimistic side of decentralized finance in the long term, considering that FTX’s business is opaque and its relationship with Alameda calls for more transparency in the digital asset industry.

*Not investment advice.