Decentralized finance (DeFi) has felt the impact of the market crash that happened on Wednesday. The space which had already been struggling due to low interest had seen its total value locked (TVL) tank by more than $10 billion in a three-day period.
TVL Falls To $44 Billion
For the last couple of weeks, the DeFi TVL had been trending just above $55 billion. This was when Ethereum had staged a recovery above $1,500 and other DeFi tokens had rallied along with it. However, just when it looked like the market was beginning to settle into a growth trend, the FTX insolvency hit the crypto market.
Coming out of the weekend, the DeFi TVL was sitting at a total o $55.87 billion. Now, in the span of four days, it has fallen by more than 20% to be sitting at a 19-month low of $44.44 billion. It is down more than 9% in the last 24 hours with the majority of DeFi protocols seeing a similar decline in the same time frame.
The biggest losers during this time have been the Solana ecosystem users. The price of the digital asset had tanked more than 50% in the 4-day period and the TVL had followed suit. In the last 24 hours, Solana DeFi TVL is down by 31.69%. This puts it at a TVL of $427.98 million compared to $1 billion at the start of the week.
TVL falls 20% in 4 days | Source: DeFiLlama
As for Ethereum, its current $25…
