Defi protocols record double-digit losses, total TVL tanks 19%

As the cryptocurrency market fell below the $2 trillion mark, the decentralized finance ecosystem recorded a high amount of losses.

According to data provided by Defi Llama, the total defi total value locked (TVL) has fallen by 19% in the last 24 hours – from $88.8 billion to $71.8 billion. This is the first time defi TVL has fallen below $71 billion since February 24.

Defi TVL – August 5 | Source: Defi Lama

Leading defi protocol Lido Finance saw its TVL drop by 19.2% over the past day, dropping to $23 billion. The native token of top liquid staking protocol Lido DAO (LIDO) is down 26% over the past 24 hours and was trading at $0.98 at press time.

EigenLayer, AAVE, and Maker also saw their TVLs drop by 18.5%, 16.7%, and 10.8%, respectively. Following the decline, AAVE’s TVL fell below the $10 billion mark for the first time since May 2.

Additionally, JustLend, ether.fi, and Uniswap experienced decreases in their TVLs by 15.7%, 19.6%, and 17.4%, respectively.

At this point, data from Defi Llama shows that the TVLs of the 34 leading protocols have seen significant declines in the last 24 hours.

The decline in total defi TVL comes as the cryptocurrency market faces turbulence triggered by geopolitical concerns. Notably, global crypto market capitalization fell by 13.4% in the past day, dropping below the $2 trillion mark.

Additionally, the market-wide decline has led to liquidations of over $1 billion in the last 24 hours. The leading cryptocurrency Bitcoin (BTC) also fell below the $50,000 level a few minutes ago today.

On August 2, spot Bitcoin and Ethereum (ETH) ETFs in the US saw significant outflows. BTC ETFs witnessed $237.4 million and ETH ETFs witnessed $54.3 million in outflows as investor sentiment shifted amid market-wide FUD (fear, uncertainty, and doubt).