The recent downturn in the crypto market has also taken its toll on the decentralized finance (DeFi) space. This is evident from the fact that the total value locked (TVL) in about 118 different blockchains that are part of the space has gone below the $100 billion mark. On December 2^nd, 2021, the TVL in DeFi had reached an all-time high value of $253.91 billion. However, it has now come down almost 70% to reach a value of $74 billion.

In addition, there has also been a 70% loss in value in the tokens of leading smart contract platforms against the US dollar. Back in December, this value had been $823 billion and it has now come down to $245 billion.

DeFi Facing Carnage

While it is a fact that cryptocurrencies in the market, including the world’s largest crypto i.e. Bitcoin, have suffered losses and declined in value, their suffering is not on the same scale as that of decentralized finance and smart contract platform tokens.

The implosion of the UST and LUNA tokens from Terra may have set the flame, but the lack of confidence in algorithmic stablecoins and the issues with crypto lenders like Three Arrows Capital (3AC) and Celsius Network have just fanned the fire.

Reports in the previous week had already indicated that smart contract tokens and DeFi platforms had been dealt with some major blows. But, the TVL at that time in various defi protocols was still around $104 billion. But, it has now shed 70.74% of its value, as it is down to $74.27 billion. Makerdao is the defi protocol that leads the pack. Its total TVL is about $7.75 billion, which makes it 10.43% of the total.

The last seven days saw Makerdao’s TVL come down by 15.9%, while a 40% decline in the TVL was reported by Aave, which is the second-largest protocol in the decentralized finance (DeFi) space.

Top TVLs Today

Of all the blockchain platforms that exist, the largest TVL is that of ethereum, which is $47.33 billion and this makes it about 64.18%. The Binance Smart Chain (BSC) takes the second spot in terms of total value locked. It commands about 8.22% of the TVL which is valued at $6.06 billion.

The third-largest blockchain network is Tron, which is 5.42% of the TVL, which puts it about $3.99 billion. It should also be noted that there has also been a drop in the TVL in bridges from Ethereum in the past month, which is about 60%. There has also been a 70% decline in the tokens that are often leveraged in decentralized finance. The leading token is Ethereum (ETH) which is valued at $131.50 billion and it lost around 39.3% in the last week.

Most of the tokens have suffered from significant losses in the previous week. There was a 34% loss in Avalanche (AVAX), a 25% decline in Binance Coin (BNB), a 22.5% loss in cardano (ADA), a 20.7% fall in polkadot (DOT) and a 22.3% fall in Solana (SOL).