The overall value of the crypto economy has dropped by more than 5% against the US dollar in the past 24 hours, with the top smart contract token sector losing more than 8% in the same time frame. The downturn has also affected the decentralized finance (defi) sector, with the total value locked in defi today awfully close to dropping below the $40 billion range after shedding 5.65% in value over the last day.

TVL Nears the $40 Billion Range, Three Tokens Record Heavy Losses

The total value locked (TVL) in decentralized finance (defi) has decreased by 8.97% from $47.12 billion on June 5 to $42.89 billion on June 10, 2023, at 8:30 a.m. (ET). This loss amounts to approximately $4.23 billion in five days. The majority of these losses occurred during the last day, as the crypto economy and the top smart contract coin sector have seen a steep drop in the last 24 hours.

The total market capitalization of the top smart contract token economy is currently $312 billion, but it has lost 8.6% of its value since yesterday. Three tokens, namely cardano (ADA), solana (SOL), and polygon (MATIC) have lost more than 20% of their value since Robinhood announced that it would delist these coins on June 27, 2023. Ethereum accounts for $209 billion of the total market capitalization of $312 billion.

The TVL in defi has not been this low since March 12, 2023, when it was at $42.51 billion. The TVL had been above $40 billion since January 8, but it is now awfully close to falling below that level. All of the top ten defi protocols have seen losses in the last 24 hours and seven days. Only Lido Finance has recorded gains in the last 30 days, defillama.com’s defi statistics detail.

Coinbase’s Wrapped Staked Ether protocol lost the most this week, with a 10.75% decrease. Instadapp also lost 9.59% in the past seven days. Ethereum’s 814 different defi protocols account for 55.88% of the market share at 8:30 a.m. on Saturday, out of the $42.89 billion locked. Tron is the second largest blockchain in terms of TVL size, with a 12.25% market share. Ethereum and Tron are followed by Binance Smart Chain (BSC), Arbitrum, and Polygon.

The three tokens that Robinhood decided to delist have experienced significant losses in terms of TVL over the past seven days. Solana lost the least, shedding 5.99% this week, while Polygon saw a loss of around 14.90%. Cardano’s TVL in defi took the biggest hit, losing 32.57% in the last seven days.

If the smart contract token economy continues to lose value, the TVL in defi will follow suit and may fall below the $40 billion mark. However, since the crackdown on centralized crypto exchanges, there has been a significant increase in defi activity and decentralized exchange (dex) trade volumes. The largest dex by trade volume, Uniswap, has benefited the most from the influx of dex trades since the recent U.S. Securities and Exchange Commission (SEC) lawsuits against Binanceand Coinbase.

Will the recent downturn in the crypto market be a temporary setback for smart contract tokens and defi, or is it a sign of deeper troubles ahead? Share your thoughts and predictions on the future of the crypto economy and its impact on defi in the comments section below.

#defiprotocols #ARB #MATIC #SOL

Introduction

In the world of finance, a revolution is taking place through decentralized finance (DeFi). While many associate cryptocurrencies with meme coins and NFTs, the real action lies in the protocols and tokens that are advancing the financial landscape. One of the most vocal supporters of DeFi is CryptoPM, and in this blog post, we'll dive into their insights on the DeFi pump and the next big thing in the industry.

Uniswap and the Rise of DeFi 1.0

CryptoPM has been ahead of the curve when it comes to DeFi. Back in January 2020, they recognized the potential of Uniswap, a tokenless DeFi protocol that operates solely on smart contracts. They understood that the only way to invest in Uniswap was by using it, and their prediction proved right when Uniswap rewarded its users with a massive airdrop later that year. Since then, Uniswap has become a critical building block of DeFi, along with other protocols like Synthetics, Compound, and Aave.

The Bullish Rise of DeFi 1.0

Recently, DeFi 1.0 protocols have been experiencing significant price movements. Uniswap, Synthetics, Compound, and Aave have all seen substantial pumps, with price increases ranging from 28% to 112% in less than a month. These bullish movements indicate something special is happening within the DeFi sector, as real protocols that are revolutionizing finance gain traction.

Understanding the DeFi Money Flow

To grasp the potential of the upcoming DeFi pump, it's essential to understand the money flow within the cryptocurrency market. Traditionally, money flows from fiat or stablecoins into Bitcoin, then into large-cap cryptocurrencies like Ethereum, and finally into mid and low-cap tokens before returning to Bitcoin or fiat. In the DeFi world, money skips Bitcoin and flows directly into Ethereum. From there, it moves into DeFi 1.0 protocols like Uniswap, Synthetics, Compound, and Aave.

The Next Wave: DeFi 2.0

After the success of DeFi 1.0, the focus now shifts to DeFi 2.0 protocols. CryptoPM believes that the next big pump will come from these next-generation DeFi projects. One protocol they highlight is GMX, a decentralized perpetual exchange built on Ethereum's Layer 2 solution Arbitrum and the Avalanche chain. GMX allows users to go long or short with up to 50x leverage without relying on a centralized source. Additionally, GMX has a unique feature where trading fees go directly to token holders, providing an attractive incentive for investors.

GMX V2 and Archie Finance

GMX is set to release its version 2, which will include synthetics, enabling trading of any asset on the platform. This expansion has led to the emergence of Archie Finance, a leveraged yield farming protocol integrated with GMX. Archie Finance allows users to boost their APYs through leverage, providing both passive income and higher rewards for those willing to take on active risk management. With the synergy between GMX and Archie Finance, the potential for growth and profitability is significant.

Conclusion

The world of DeFi is on the verge of another pump, and this time it's the DeFi 2.0 protocols that are set to thrive. CryptoPM's insights and predictions have been accurate in the past, and their enthusiasm for GMX and Archie Finance indicates the potential for substantial gains. As we witness the evolution of decentralized finance, it's crucial to stay informed about the latest developments and identify promising opportunities.

#defiprotocols #cryptopmyoutube #DEFI #crypto2023

Introduction:

In the dynamic world of cryptocurrencies, decentralized finance (DeFi) has emerged as a revolutionary concept, enabling individuals to access financial services in a transparent and permissionless manner. One crucial metric that showcases the success and popularity of DeFi projects is Total Value Locked (TVL). This article aims to provide a comprehensive understanding of TVL and explore some notable projects with higher TVL.

What is Total Value Locked (TVL)?

Total Value Locked, commonly referred to as TVL, is a metric used to measure the total amount of cryptocurrency tokens or assets locked within a specific DeFi protocol or smart contract. TVL represents the cumulative value of funds deposited, borrowed, or utilized within the protocol, providing insights into the overall adoption and user activity.

Importance of TVL:

TVL plays a crucial role in evaluating the success and growth of DeFi projects. Higher TVL indicates the confidence and trust of users in a particular protocol. It reflects the extent of funds being deployed, highlighting the attractiveness and utility of a platform.

Prominent DeFi Projects with Higher TVL:

1. Compound Finance:

Compound Finance is one of the pioneering DeFi platforms, offering lending and borrowing services. It allows users to earn interest by depositing their cryptocurrencies as collateral and enables others to borrow against these collateralized assets. Compound Finance has consistently ranked among the projects with higher TVL, reflecting its popularity and trust within the community.

2. Aave:

Aave is a decentralized lending platform that facilitates lending and borrowing activities. It stands out for its unique features like flash loans, which allow users to borrow assets without collateral, provided the borrowed amount is returned within the same transaction. Aave has achieved significant TVL figures, demonstrating its ability to attract users seeking lending and borrowing services.

3. MakerDAO:

MakerDAO is a decentralized autonomous organization responsible for the development and governance of the stablecoin Dai. It operates on the Ethereum blockchain, allowing users to lock their cryptocurrency assets as collateral and generate Dai stablecoins. MakerDAO’s TVL has witnessed considerable growth, showcasing its status as a trusted decentralized stablecoin provider.

4. Uniswap:

Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain, enabling users to swap ERC-20 tokens directly from their wallets. Uniswap employs an automated market maker (AMM) model and provides liquidity through liquidity pools. Its TVL has been consistently high, emphasizing the popularity of decentralized exchanges and the demand for seamless token swapping.

5. PancakeSwap:

PancakeSwap is a decentralized exchange and Automated Market Maker (AMM) platform running on the Binance Smart Chain (BSC). It offers similar functionalities to Uniswap but with lower transaction fees due to its integration with BSC. PancakeSwap has rapidly gained traction, resulting in a significant TVL figure on the Binance Smart Chain.

Conclusion:

Total Value Locked (TVL) serves as an essential metric for assessing the success and adoption of decentralized finance projects. It reflects the amount of cryptocurrency tokens locked within a specific protocol, demonstrating user trust and activity. Projects like Compound Finance, Aave, MakerDAO, Uniswap, and PancakeSwap have consistently achieved higher TVL figures, showcasing their significance and contribution to the DeFi ecosystem. As the DeFi space continues to evolve, monitoring TVL will remain an integral part of evaluating the performance and popularity of various projects.#tvl #defiprotocols #BinanceTournament #Ethereum

In a recent report, market intelligence platform IntoTheBlock underscores the crucial role of liquidation blocks when evaluating risk in decentralized finance (DeFi) protocols. It highlighted that overlooking this metric could expose investors to the risk of insufficient collateral for loan repayment, especially if a liquidation remains open for an extended period.

🧮 Evaluating risk in DeFi protocols? Don't overlook this crucial metric: the number of blocks needed to perform a liquidation. As a liquidation remains open longer, a price decrease in assets could lead to insufficient collateral for loan repayment. https://t.co/BfMMBOHesb… pic.twitter.com/4pYtOcrVd7

— IntoTheBlock (@intotheblock) May 31, 2023

Liquidation blocks refer to the number of blocks required for the liquidation process to complete. The report highlights that protocols with shorter liquidation periods offer increased security and resilience against sudden asset price decreases. This is crucial as longer liquidation periods can potentially lead to a collateral shortfall, endangering loan repayment.

In another thread, IntoTheBlock emphasizes the importance of the Health Factor Distribution indicator in assessing risks within DeFi protocols. The indicator provides a comprehensive view of the number of loans facing liquidation within a protocol, enabling investors to gauge potential risks.

📊 The Health Factor Distribution indicator offers valuable insights into DeFi protocol risks. As the number of loans facing liquidation rises, depositors face higher investment risks #DeFi

— IntoTheBlock (@intotheblock) May 23, 2023

In a related development regarding liquidations in the broader crypto market, data from CoinGlass, a well-known crypto derivative data analysis platform, shows that a staggering 39,934 traders have been liquidated in the last 24 hours.

The cumulative amount lost by these traders is $88.69 million, with the most significant single-order liquidation occurring on the OKX exchange for the ETH-USD-SWAP pair, with a value of $2.06 million.

The recently liquidated $88.69 million is a much lower figure compared to another liquidation event reported by Coin Edition earlier this year. Specifically, the report stated that 80,922 traders lost $243 million within a 24-hour window, with $185 million occurring in under 45 minutes.

#BinanceTournament #defiprotocols #Binance