The value of the crypto market has started to fall again after a bullish surge over the past seven weeks. The total value locked (TVL) in decentralized finance (defi) has slipped below the $50 billion mark to $49.8 billion. The TVL in defi has fallen by 2.24% in the last 24 hours. During that same time period, the leading smart contract token economy lost 3.7% against the US dollar.
Economics and Value of Smart Contract Token Locked in Defi Dip
cryptocurrency prices are down this weekend, affecting smart contract token values โโand the total value locked in defi. At the time of writing, the smart contract token economy is valued at $326.11 billion, but it has fallen 3.7% over the past day. During the last week, Ethereum (ETH) it has lost 5.6% against the dollar, and the polygon (MATIC) has lost 17.6% in value.
Currently, the TVL in defi today is $49.8 billion, with 18.03% of that value residing in Lido's liquid equity protocol. The value locked in Lido today is around $8.75 billion, up 8.43% from last month. Makerdao, Curve, Aave, Convex Finance, Uniswap, Justlend, Pancakeswap, Instadapp, and Compound Finance follow Lido in order. In addition to Lido's 8.43% rise, Uniswap had the second largest 30-day rise at 6.43%.
As of February 25, 2023, Ethereum has the largest TVL of any blockchain, with 58.45% dominance. It is followed by Tron with 10.64%, Binance Smart Chain (BSC) with 10.01%, Arbitrum with 3.89% and Polygon with 2.36%. The five blockchains capture 85.35% of the added value locked in decentralized finance on Saturday. Of the top ten blockchains in terms of TVL size, only Decision saw increases, with the TVL rising 9.39% last week and 60.87% over the past month.
Among the top ten smart contract coins, Polygon had the biggest drop this week, down 17.6%. In terms of the entire smart contract token economy, the biggest gainer this week was stacks (STX), which were up 102.5%. The second biggest smart contract coin gainer was kylin network (KYL), which was up 69.1% against the dollar. The two biggest losers in the last seven days in terms of smart contract tokens were astar (ASTR), which lost 26.2%, and shiden network, which lost 23.9% this week.
What do you think caused the recent drop in cryptocurrency prices and how do you think it will affect the future of decentralized financial markets? Share your thoughts in the comments section below.
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