Decentralized finance (DeFi) is having a rough time in 2022, and data from Messari shows that the ten largest DeFi assets are currently down 10%-50% since the beginning of the year.
Top ten DeFi tokens by market capitalization. Source: messari
One positive thing is that the situation may soon change once funds start returning to the DeFi ecosystem after a month of decline as data shows institutional and retail funds are returning to the crypto markets.
Data from Defi Llama shows that the total value locked across all DeFi platforms rose to $211.1 billion on February 11 from $185.14 billion on January 31.
Total value unlocked in DeFi. Source: Devi Lama
A closer look at the individual protocols that contribute to the overall TVL reveals that the biggest shortcomings of TVL over the past 30 days have been in protocols focused on stablecoins such as Curve (CRV) and Convex Finance (CVX), which appear to have struggled with security. Damage to popular resettlement projects such as OlympusDAO (OHM) and Wonderland (TIME) is exploding.
Projects tightly integrated with Curve have also seen a major turnaround, with Yearn.Finance seeing a 28.57% drop in TVL and Abracadabra.money and a 46.3% drop in TVL amid controversy surrounding development team members.
However, every crisis presents an opportunity, and in this case, it is the decentralized stablecoin protocol Frax (FXS) that has benefited from the stablecoin change. TVL has increased 35.81% in the last 30 days.
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DEX activity is still high
Regardless of the total fixed cost metric, which has its strengths and weaknesses, activity in DeFi applications continues to grow year on year, with Decentralized Exchange (DEX) trading volumes over the past three months among the highest recorded in history. .
Monthly DEX volume by projects. Source: Dune Analytics.
Uniswap (UNI) remains the dominant DEX with 77.9% of transaction volume, followed by 7.8% by Curve and 5.6% by SushiSwap (SUSHI).
According to TokenTerminal data, the top three protocols for Gross Goods Value (GMV) over the past three days, a calculation that measures the total value of sales over a certain period of time, were Uniswap, dYdX, and SpookySwap.
Best decentralized applications based on GMV. Source: token station
The number of DAUs is increasing
A recent account indicating continued use of the decentralized economy is the total number of DeFi users, which continues to grow steadily according to Dune Analytics.
As of February 10, there were 4,363,238 unique addresses interacting with the DeFi application, which is an increase of more than 300% year-over-year from the 1,369,368 wallets registered on February 10, 2021.
The total number of DeFi users over time. Source: Dune Analytics.
A closer look at the distribution of applications encountered by most users reveals that Uniswap dominates this area once again with 3,608,951 unique wallets interacting with the DEX protocol, followed by 1 inch with 1,108,570.
The total market capitalization of the cryptocurrency is now $1.996 trillion, with Bitcoin controlling 41.9%.