With the crypto market recovery last week, it looked as if the DeFi market was beginning to see some last at the end of the tunnel. However, that has proven to not be the case, given that the TVL has taken a dip once more.
DeFi TVL Sheds $5 Billion
The month of July had seen the DeFi market add more than $10 billion to its TVL. Starting out at $72 billion, it had grown to almost $87 billion by the middle of the month. This recovery was attributed to the gains in the market from leading networks such as Ethereum and Polygon. With this recovery had also come some much-needed faith that saw more tokens moved into the DeFi space. That is until the weekend when the market had begun to shed all of its gains.
Ethereum, which had blown past $1,600 at the height of the recent rally, had promptly begun to decline, bringing the TVL down with it. As it now stands, the DeFi TVL is down $5 billion in the last two days. This accounts for a 5.81% decline in the DeFi market.
In the last 24 hours, data from DeFiLlama shows that the DeFi TVL is down 4.49% as of the time of this writing. The top networks are experiencing declines on this scale, too, such as Ethereum being down 4.86% and the BSC network losing 3.78% in the last day.
Tokens Not Faring Much Better
The DeFi TVL has not been the only thing to take a hit. In fact, the decline in this aspect of the market has been a direct result of the decline recorded in the DeFi tokens. These tokens had been at the forefront of the relief rally, following in the footsteps of the market leader Ethereum.
However, just as the tokens had seen the most gains during the recovery, the retracement has been brutal for them. Coins such as Solana and MATIC have returned double-digit losses in the last day with 18.48% ad 16.01%.
The large losses have remained prominent across all DeFi tokens, although Ethereum’s price has held up quite nicely. The leading smart contract network is down 7.16% in the last 7 days and 7.19% in the last 24 hours.
Others who have recorded losses have been Polkadot with 12.32%, Avalanche with 12.06%, and NEAR Protocol with 8.24% in the last 7 days.