DeFi has been going through a difficult process since the beginning of 2022. The top 10 DeFi assets have dropped between 10 percent and 50 percent since the start of the year, according to Messari data.
This could soon change as investments return to the DeFi sector, after a month of declining returns from institutional and individual investors to the crypto space, as the data shows.
Total locked value (TVL) across all DeFi platforms increased from $185.14 billion on January 31 to $211.1 billion on February 11, according to DeFi Llama data.
Looking closely at the protocols that contribute to total TVL, the biggest declines in TVL over the past 30 days are Curve (CRV) and Convex Finance (CVX), which seem to suffer from losses in collateral shown in popular projects such as OlympusDAO (OHM) and Wonderland (TIME). It has happened in stablecoin-oriented protocols.
Among the discussions surrounding the development team, there was a significant exit from Curve-integrated projects in terms of TVL, with Abracadabra.money falling 46.3 percent and Yearn.Finance falling 28.57 percent.
But every crisis creates an opportunity. Benefiting from this turmoil was the decentralized stablecoin protocol Frax (FXS). FXS's TVL has increased by 35.81 percent in the last 30 days.
TVL data with its weaknesses and strengths aside, the activity in DeFi applications continues to increase year-on-year, with the transaction volume realized on decentralized exchanges in the last three months among the highest volumes recorded in history.
Uniswap (UNI) continues to dominate decentralized exchanges with 77.9 percent of the total trading volume, followed by Curve with 7.8 percent and SushiSwap (SUSHI) with 5.6 percent.
Uniswap, dYdX, and SpookySwap were the three largest protocols in terms of GMW, a metric that measures the total sales value over a period, according to TokenTerminal data.
The final metric that signals the continued adoption of decentralized finance is the total number of DeFi users, which continues to rise steadily, according to Dune Analytics data.
The number of individual wallets interacting with DeFi applications increased by more than 300 percent year on year, from 1,369,368 on February 10, 2021 to 4,363,238 as of February 10, 2022.
Looking closely at the applications most used by users, it is seen that 1Inch, which has 1,108,570 unique wallet addresses, follows Uniswap, which once again dominates the field with 3,608,951 unique wallet addresses interacting in the DEX protocol.
While the total market value of the crypto money market is $ 1.996 trillion, Bitcoin continues to dominate the field with 41.9 percent.