While crypto prices have seen some healing during the last few days, the total value locked (TVL) across the entire decentralized finance (defi) ecosystem has also improved. The TVL in defi has seen an increase of 7.19% since June 20, and the defi protocol Makerdao’s TVL dominates by 10.37% this weekend.
Defi TVL Improves, Cross-Chain Bridge TVL Slips, $100 Million Stolen From Harmony’s Horizon Bridge
Decentralized finance has been hit by the recent crypto bloodbath following the Terra blockchain fallout, the latest Federal Reserve rate hike, and alleged financial troubles surrounding Celsius and Three Arrows Capital (3AC). On June 17, Bitcoin.com News reported that the bear market was negatively affecting the defi and three days later the TVL in defi had fallen to a low of $71.98 billion.
Since then, there’s been a 7.19% increase as the TVL rose from $71.98 billion to today’s $77.16 billion. The Makerdao protocol has the largest TVL out of all the defi projects and dominates by 10.37% this weekend with $8 billion TVL.
Makerdao’s TVL has increased by 6.89% over the past seven days. The second largest challenge protocol in terms of TVL size is Aave, at $6.59 billion, and Aave saw a 27.13% increase over the week. When it comes to TVL blockchain distribution, Ethereum commands 63.98% with $49 billion TVL.
Binance Smart Chain (BSC) is the second largest chain by TVL with 7.85% or $6.01 billion locked. After the market capitalization of the top smart contract tokens hit $245 billion last week, the market cap has swelled to $280 billion, up 1.4% during the last 24 hours.
Ethereum (ETH) rose 12.7% against USD and BSC jumped 10.5% last week. Solana (SOL) swelled by 37.1%, avalanches (AVAX) recorded an increase of 32.2% and polygon (MATIC) increased by more than 50% during the seven-day period.
The biggest gainers in the top smart contract token list during the past week were ronin (RON), zilliqa (ZIL), and polygon (MATIC), respectively. Despite smart contract tokens seeing some gains this week and the TVL in defi improving, the TVL across the cross-chain bridge sector is down 60.4% during the past 30 days.
At the time of writing, the TVL inter-channel bridge over 16 different protocols is worth $11.77 billion. Polygon orders TVL’s largest inter-channel bridge with $3.6 billion tied up on June 25.
Meanwhile, the defi ecosystem has seen a few hiccups over the last seven days as Convex Finance is asking users to review approvals while it evaluates a “potential front end issue.” Additionally, Harmony’s cross-chain bridge lost $100 million in a theft that took place on June 23.
“Note that this has no impact on the trustless [bitcoin] bridge; its funds and assets stored in decentralized vaults are safe at this time,” the Harmony team wrote of the situation. “We have also notified exchanges and shut down the Horizon Bridge to prevent further transactions. The team is on deck as investigations continue.
