DeFi TVL drops by 10% in August; Ethereum leads with most losses
DappRadar, in a new report, found that the overall total value locked (TVL) within the decentralized finance ecosystem (DeFi) declined by 10.47% in August. The total TVL now stood at $58.4 billion.
According to the data from DefiLlama, DeFi TVL sat at $250 billion less than eight months ago. With only $58.4 billion, total TVL today stood at its April 2021 level when the DeFi ecosystem began gaining momentum. Furthermore, the total DeFi TVL has dropped by 55% as compared to 2021.
In August, the fall in the DeFi TVL caused the market to lose about $8.7 billion. According to DappRadar, this decline was attributable to the 8 August announcement by the Office of Foreign Assets Control (OFAC) barring U.S. residents from using Tornado Cash.
However, despite this decline in TVL, DeFi-based activity went up by 3.7% in August.
With a total TVL of $34.69 billion by projects housed within Ethereum [ETH], the network controls 68% of the total market share. However, according to DappRadar, the network’s market share declined by 11% in August and has declined by 56.63% in the last year.
The top DeFi protocols on Ethereum, MakerDAO, Lido Finance, and Uniswap also registered declines in the last month. At press time, MAakerDAO’s TVL stood at $8.37 billion, having declined by 6% in August and by over 25% since August 2021.
Interestingly, despite the upcoming Merge and leading the campaign for liquid staking of Ethereum, TVL on Lido Finance dropped 7% in August. Also, Uniswap ’s TVL was $5.58 billion as of this writing. It declined by 12% in August.
DappRadar found further that the TVL of protocols built on BNB Chain declined by 6.44% in August and has so dropped by 75.67% since August 2021. As for Solana [SOL], the attack suffered by the
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