Decentralized finance (defi) has continued to stay deeply ingrained within the cryptocurrency financial system because the ecosystem supplies customers with a non-custodial method to change digital belongings, lend cryptocurrencies, subject stablecoins, and methods to revenue from arbitrage. Within the lending sector of defi, loads has modified over the last 12 months as lending functions like Terra’s Anchor Protocol bit the mud, and 71.95% of the overall worth locked in defi lending protocols evaporated.
From $37 Billion to $10 Billion: The High 5 Defi Lenders Then and Now
Final 12 months round this time, decentralized finance lending protocols held $37.41 billion in whole worth locked (TVL), and the defi protocol Aave dominated with $12.87 billion. An archive.org snapshot from Jan. 10, 2022, exhibits that Aave’s $12.87 billion TVL was bigger than the TVL the highest 5 defi lending protocols held on Jan. 17, 2023.
Data exhibits that the highest 5 defi protocols in mid-Jan. 2023 embrace Aave ($4.58 billion), Justlend ($3.02 billion), Compound ($1.85 billion), Venus ($813.63 million), and Morpho ($221.59 million). At present, all 5 of the aforementioned defi protocols have a mixed TVL of round $10.49 billion.
On Jan. 10, 2022, Terra’s Anchor Protocol held roughly $8.5 billion in worth, however now the defi protocol is in ashes. Anchor was one of many main components within the Terra ecosystem as terrausd (UST) holders deposited UST for a 20% annual share fee return that compounded each day.
However in Could 2022, UST depegged from its $1 parity, and Anchor holds solely round $2 million immediately. Compound held the third-largest TVL when it comes to defi lending protocols with $8.09 billion on the time. On Jan. 17, 2023, Compound’s TVL has shrunk to $1.85 billion.
The second-largest defi lending protocol immediately is Justlend with $3.03 billion. The Tron-based Justlend moved from the seventh-largest defi lending protocol TVL to the second by leaping from $1.72 billion to the present $3 billion. Justlend is among the solely decentralized finance lending functions that noticed a rise over the last 12 months.
The fourth and fifth-largest defi lenders final 12 months, Abracadabra and Cream Finance, are not within the prime 5 standings and have been changed by Venus and Morpho. Cream Finance is now within the twentieth place, dropping from $2.14 billion to the present $42.94 million.
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