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The total value locked (TVL) of MakerDAO (MKR) hit new lows in the last week of May as investor interest in decentralized finance waned (DeFi).
Maker, after Curve and Lido, was the third-ranked decentralized application (dApp) with the highest value locked in April.
MakerDAO makes it possible to create DAI. DAI has been incorporated into over 400 services and apps, including games and decentralized banking platforms, as part of a developing ecosystem.
Maker dropped 45 percent of its year-high TVL on Feb. 10, 2022, according to a Crypto study. On that day, its TVL was at $18.12 billion, but by May 24, it had decreased to around $9.82 billion.
Fall of TVL
Because of the global crypto market fall, its TVL has fallen. On the opening day of the year, TVL had a market capitalization of $17.5 billion, which had dropped by 43% to more than $9 billion by the end of May.
In all, Ethereum TVL fell 50% from $146.78 billion on January 1 to $72.93 billion on May 24, 2022.
MakerDAO has become the dApp with the greatest value locked, despite losing more than $8 billion in total value locked.
MakerDAO currently has a higher TVL than Curve, Aave, Lido, Uniswap, Convex Finance, PancakeSwap, Compound, JustLend, Instadapp, and SushiSwap, among other prominent dApps.
MKR began trading on February 10 at a price of $2,247.69 and ended on May 12 at a price of $984.81. It has risen marginally since then and was trading for $1,311 at the time of publication.
In all, MKR has lost 44% of its value in the last 15 weeks.
Deliverables of MakerDAO
MakerDAO is a cryptocurrency lending credit institution that provides loans at specified interest rates.
To borrow from the MakerDAO, a user must first deposit Ethereum into a Maker smart contract. A Collateralized Debt Position is created by the smart contract (CDP)
MakerDAO was formed in 2014 by Rune Christensen, a Danish entrepreneur.
MakerDAO is an Ethereum-based platform that creates the Dai stablecoin and allows for collateral-backed loans to be made without the use of a middleman.
MakerDAO is one of the most operational protocols in the crypto industry due to its broad use and DeFi integration.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
