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After $100 Billion left the decentralized economy, trust in DeFi was shaken.

16-May-2022 By: Sudeep Saxena
After $100 Billion l

Terra's downfall has continued to highlight the vulnerability of the 

Decentralized finance ecosystem. 

The total value locked in DeFi has dropped from $231 billion to $112.29 billion in 42 days following Terra's fallout.

The value of DeFi TVL has dropped by about 50%. Terra Meltdown has had the greatest impact on the DeFi Economy since April 3rd.

The overall value of DeFi today is $112.29 billion, barely beyond the $100 billion thresholds. While the TVL has been falling since nearly hitting an ATH on April 3, last week's Terra upheaval wiped out the majority of the TVL stored in decentralized financial mechanisms.

The Terra blockchain contained $30.45 billion, or 13.15 per cent of the $231 billion aggregate, 42 days ago on April 3. Terra was the second-largest TVL in DeFi, but now it ranks 14th with only $500.38 million.

Ethereum leads the TVL in DeFi with 63.63 per cent of the total in DeFi, or $71.09 billion, out of the $112.29 billion on Sunday. Binance Smart Chain (BSC) has the second-largest TVL in DeFi, with 7.71 per cent of the $112.29 billion or $8.62 billion held on BSC.

Another notable shift this week was the demise of Curve's DeFi supremacy, as Makerdao has overtaken Curve as the largest DeFi protocol in terms of TVL size. Maker Dao has a 9.40 per cent market share with a $10.56 billion TVL, while Curve has $8.76 billion.

Curve's current TVL is a far cry from the $21.17 billion it was on April 3, just 42 days ago. During the last seven days, the top 28 DeFi methods have had substantial TVL drops. Makerdao is still in the forefront, although it dropped 13.73 per cent this week, and Curve is also down 49.18 per cent. This week, Lido has dropped 46.37 per cent, while Aave, a DeFi app, has dropped 21.94 per cent.

Anchor has plummeted to 58th place in terms of TVL after dropping 97.76 per cent this week. Anchor currently has a total value of $309.78 million in the lending procedure, according to statistics.

In terms of TVL size, 17 DeFi protocols have a total value of $1 billion or more. Ethereum still leads the pack with $419 billion in smart contract protocol tokens. Terra is now ranked 18th in terms of market valuation among smart contract platform tokens.

While Terra's problems reverberated throughout the crypto-economy, decentralized finance was particularly hard hit. In little than a week, not only was trust shattered but well over $100 billion was taken from DeFi.

It will most probably take a bit of time before faith is restored and the $100 billion lost to the DeFi ecosystem is recovered. Ethereum has profited the most out of all the DeFi chains since its hegemony has expanded significantly since last week. Even so, Ethereum was affected, as the chain dropped 31.53 per cent in the last seven days.

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