Major Turmoil in the DeFi Lending Sector: 71% of Total Value Locked Evaporated in 12 Months
Around this time last year, decentralized finance lending protocols had $37.41 billion in total value locked (TVL), and DeFi protocol Aave was dominant with $12.87 billion. If we look at the data for January 10, 2022, we can see that an archive.org snapshot shows that Aave’s TVL of $12.87 billion was larger than the TVL of the top five defi lending protocols held on January 17, and the data According to the top 5 DeFi protocols in mid-January or 20 were in it. Aave ($4.58 billion), JustLend ($3.02 billion), Compound ($1.85 billion), Venus ($813.63 million) and Morpho ($221.59 million) while currently reporting a combined TVL of all five protocols at approximately $10.49 It’s a billion. On January 10th we can see that Terra’s anchor protocol was valued at around $8.5 billion, but now the DeFi protocol is downright rubbish and what used to be one of its main components in the Terra ecosystem. Because Teraude (UST) holders deposited UST for a 20% annual rate of return and compounded daily but in May 2022 UST was liquidated with its $1 parity and today Anker only has $2 million . Compound had the third largest tv-l in terms of defi lending protocols at the time with $8.09 billion, and as of January 17, Compound’s tv-l declined to $1.85 billion. The second largest DeFi lending protocol today is JustLend with $3.03 billion. Tron-based JustLend jumps from $1.72 billion to the current $3 billion behind peer protocol tv-l to appear in second place, making Justlend one of the only decentralized loan applications to make a mistake over the past 12 months. Have seen Jumped up to second place. JustLend is one of the only decentralized finance loan applications that has seen growth during the last 12 months.
Abracadabra and Cream Finance, the fourth and fifth largest DeFi lenders last year, no longer feature in the top five standings and have been replaced by Venus and Morpho. Cream Finance is now ranked 20th, having fallen from $2.14 billion to the current $42.94 million
