The latest overview of DeFi’s TVL reveals a major decline over the past few months.
“Crypto’s Black Monday” unleashed hell on various crypto-related entities. On a widely-known open-source decentralized finance (DeFi) lending protocol dubbed Aave (AAVE) utilization rates have declined throughout all stablecoin borrowings. For instance, Binance USD (BUSD) borrowings saw a 60% decrease from May as they are currently positioned at 30%.
According to data issued by a DeFi TVL aggregator named DeFi Llama, the TVL of Aave (AAVE) has plummeted from $33.51B last October to $8.11B.
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The utilization rate is defined as the ratio of borrowed to deposited funds. Thus, consumers are reportedly withdrawing large amounts of money in the wake of Monda’s sell-off to avert liquidation because borrowers must submit digital asset collateral prior to taking out a loan on Aave.
As stated by CryptoRank Platform, a crypto market data analytics platform, due to the current market turmoil, DeFi’s total value locked (TVL) has decreased by 55% since the end of April. As of now, there is $115.7B worth of funds left, with $72B of TVL on Ethereum (ETH), $9.9B on Tron, $8.8B on Binance Smart Chain (BSC), and $6.3B on Avalanche, whereas the remaining $10.1B of TVL on other blockchains.
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Due to the market conditions the total value locked (TVL) in all protocols significantly decreased over the past few months. As the figures show, DeFi’s TVL has decreased by 55% since the end of April.
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— CryptoRank Platform (@CryptoRank_io) June 13, 2022
Amid the harsh crypto market conditions, various crypto exchanges are making tough decisions to ensure sustainable growth. For instance, on June 11, Crypto.com stated that it would be reducing its number of employees by 260, or around 5% of the workforce. In addition, Gemini has also recently laid off 10% of its team.
That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term by making targeted reductions of approximately 260 or 5% of our corporate workforce.
— Kris | Crypto.com (@kris) June 11, 2022
On the other hand, earlier in June, the Bahamian exchange FTX implied that it would continue searching for new employees and “keep growing regardless of market conditions.”
