Following the Terra blockchain fiasco, decentralized finance (defi) continues to be impacted by projects. Defi’s Total Value Lock (TVL) fund is down 2.61% in the last four days, and Cross Chain Bridge is down about 20.3% in the last 30 days.
Cross Chain Bridge Tech’s Value Lock is down 20%
in the last month.
TVL statistics continue to fall, with over $100 billion recently removed from the total value locked in defi (TVL). Four days ago TVL defi was about $112.29 billion and today it is down 2.61% to $109.35 billion. 12 In addition to TVL defi between blockchains, TVL interchain bridge has also declined significantly over the past month.
30-dayindicatorfrom Dune Analytics shows a 20.3% decline in TVLs of interchain bridging. Today, 16 different interchain bridges have locked in a total value of $16.49 billion. In addition to TVLs of interchain bridges, the number of unique daily contributors to Ethereum bridges has also declined. The $5.15 billion owned by Polygon Bridge represents 31.23% of the total TVL of $16.49 billion for all cross-chain bridges.
Polygon is followed by Avalanche ($35.5B), Arbitrum ($32B), Fantom’s Anyswap ($187B), Near Rainbow ($186B), Optimism ($585M), Harmony ($229M) and Moonriver ($154M) and Xdai ($122M).
Today, the main crypto-asset used for interchain bridging is USD Coin (USDC), Stablecoin. Stablecoin has $5.1 billion blocked, followed by WETH or; ETHhas $4.57 billion blocked; Tether (USDT) is in third place with $1.9 billion; other notable cryptocurrencies using interchain bridging Cryptocurrencies include WBTC, DAI and MATIC.
Defi’s overall losses are due to two different factors: first, the Terra blockchain crash resulted in more than $40 billion being withdrawn from the Defi ecosystem in a very short period of time. The remaining billions left defi in various ways, including the use of interchain bridges, as defi users were shaken by the Terra disaster.
Yesterday, billionaire investor and cryptocurrency advocate Mike Novogratz published a blog post about the recent Terra blockchain fiasco, in which he said that “the collapse undermined confidence in cryptocurrencies and defi.”
What do you think about the declining confidence in the defi ecosystem and the declining value of interchain bridge technology over the past month? Let us know what you think about this topic in the comments section below.
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