DeFi’s worth declines 70% in 2022

In 2021, the cryptocurrency industry witnessed a tremendous growth in the total value locked (TVL) across all decentralized finance (DeFi) platforms due to the influx of substantial cash. However, in 2022, it seems that the tables are turning.

In particular, the TVL recorded in December 2021 was a staggering $303.8 billion, only to fall to $96.3 billion in September 2022 — a loss of 68.3%, according to statistics released on September 26 by the crypto market data aggregation and analytics website CryptoRank.

According to this information, the TVL in DeFi has declined by 10% over the last 30 days, from $106 billion a month ago to the present value of $96.3 billion. Notably, Ethereum (ETH) continues to dominate the DeFi market, accounting for $56.3 billion or 58.46% of the whole DeFi TVL.

Tron (TRX) comes in second with $11.9 billion in TVL, followed by BNB Chain (BNB) at $8.6 billion, Avalanche (AVAX) at $3.5 billion, and Solana (SOL) at $2.3 billion. In May 2022, despite negative market conditions, Ethereum’s TVL in DeFi decreased by 35%, while Tron’s increased by 47%.

As a reminder, the TVL in DeFi increased by more than 1,200% in 2021, with Ethereum accounting for 62% of the total DeFi sector’s staking value, a little greater proportion than at today, as Finbold reported in December 2021.

The TVL reflects the total value of money collectively locked by users into DeFi projects and is one of the most important indications of the overall growth rate in this sector, with its value highly dependent on the values of underlying assets and the popularity of DeFi applications.

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