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- The downward trends in the crypto market had a direct effect on the overall Total Value Locked (TVL) last month.
- If we talk about April, Nine out of the top ten DeFi projects witnessed a drop.
- Anchor (ANC) was one project which still witnessed gains.
The cryptocurrency market has witnessed several bearish trends lately. And that clearly affected the total value locked (TVL) last month.
TVL is basically a measure to analyze the performance of the decentralized protocols or dApps. There was a drop noticed in the overall TVL in the month of April.
In early April, this TVL was around $223.99 billion and it went through a decrease by 9% by the end of the month to approximately $202.55 billion. Whereas the current TVL according to DeFi Ilama, is $199.48 Billion.
Total Value Locked is the value of the digital assets deposited in the decentralized finance protocols. It represents the sum of all staked crypto assets that earn rewards and interests via decentralized protocols.
And this drop in the overall total value locked can be associated with the fact that almost all of the ten top ten decentralized protocols saw a plunge in the TVL. The topmost DeFi protocol is Curve (CRV) whose TVL was around $20.76 billion on April 1 but dropped to around $19.53 billion by April 30.
Then the second was Lido (LDO) which also witnessed a plunge from around $18.77 billion to $17.67 billion. And similar moves were seen with others on the listicle like MakerDAO (MKR), Convex Finance (CVX), Aave (AAVE), and Compound (COMP).
Apart from them, Uniswap (UNI), PancakeSwap (CAKE), and Instadapp (INST) also saw a TVL decline.
But then there is Anchor Protocol (ANC), which remained in the third position and brought gains. Its TVL on the first day of April was $15.15 billion and increased to $16.6 billion by the end of the month.
It is indeed true that lately, the overall crypto market has seen a lot of changes depending upon several factors. But it is to look forward to how this TVL which was doing great in the Q1 of 2022, would further change.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
