DeFi flashes early revival signs as retail and institutional inflows trickle in
Decentralized finance (DeFi) has had a rough go so far in 2022, and data from Messari shows the top ten-ranked DeFi assets currently down between 10% to 50% since the start of the year.
A positive is, the situation may change soon as funds have began to flow back into the DeFi ecosystem following a month of declines as data shows institutional and retail funds returning to crypto markets.
Data from Defi Llama shows that the total value locked in all of DeFi platforms has climbed to $211.1 billion on Feb. 11, up from a low of $185.14 billion on Jan. 31
A closer look at the individual protocols that contribute to the total TVL shows that the biggest drawdowns in TVL over the past 30 days were in stablecoin-focused protocols like Curve (CRV) and Convex Finance (CVX), which appeared to suffer from the collateral damage of popular rebase projects like OlympusDAO (OHM) and Wonderland (TIME) imploding.
Projects that were closely integrated with Curve also saw significant outflows, with Yearn.Finance experiencing a 28.57% decline in TVL and Abracadabra.money seeing its TVL fall by 46.3% amid the controversy surrounding members of its development team.
Every crisis presents an opportunity, however, and in this instance it is the decentralized stablecoin protocol Frax (FXS) that has benefited from the stablecoin shakeup. The protocol's TVL has increased 35.81% over the past 30-days.
Related: Easy-to-use DeFi protocols will become the new gatekeepers to crypto
Aside from the total value locked metric, which has its own strengths and weaknesses, activity across DeFi applications continues to increase year over year with the volume transacted on decentralized exchanges (DEX) over the past three months ranking among the highest recorded
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