• DeFi TVL marked a 70% downfall from the peak witnessed during December 2021.
• The technology began to evolve in accordance with the realities of contemporary market dynamics.

There is little doubt in admitting that decentralized finance (DeFi) has proved to be a vanguard of financial revolution in the new decade. The emergence of blockchain technologies, the disruptive narrative around decentralization, and the historic crypto bull market of 2020-21, played a big part in turbocharging the DeFi economy.

From a little over 80,000 aggregate users in 2020, the ecosystem has ballooned to accommodate more than 43 million at the time of publication, data from Dune revealed.

However, over the past year or so, this breakneck growth ran across a speed bump. The onset of the crypto bear market in 2022 scarred this burgeoning sector, from which it was yet to recover as of this writing.

DeFi winter freezes TVL growth

According to on-chain analytics firm IntoTheBlock, the total value locked (TVL) in DeFi protocols reached 2.5-year lows. Fresh data from DeFiLlama corroborated this assertion. The TVL at the time of publication was $62.75 billion, last seen during the first quarter of 2021.

Moreover, the TVL marked a 70% downfall from the peak witnessed during December 2021. Needless to say, the bear market of 2022-23 played a big part in unnerving DeFi investors, resulting in outflows of roughly $170 billion from the ecosystem.

Go to Source to See Full Article
Author: Aniket Verma

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details