The decentralized finance ecosystem has seen a high amount of losses as the cryptocurrency market falls below the $2 trillion mark.
According to data provided by Defi Llama, Defi’s total value locked (TVL) has dropped 19% in the last 24 hours, from $88.8 billion to $71.8 billion. This is the first time since February 24 that Defi’s TVL has fallen below the $71 billion mark.
Leading defi protocol Lido Finance saw its TVL decrease by 19.2% over the past day, dropping to $23 billion. Leading liquid staking protocol Lido DAO’s native token (LIDO) has plunged by 26% over the past 24 hours and is trading at $0.98 at the time of writing.
EigenLayer, AAVE, and Maker also saw TVL declines of 18.5%, 16.7%, and 10.8%, respectively. As a result of the decline, AAVE’s TVL fell below $10 billion for the first time since May 2.
Additionally, JustLend, ether.fi, and Uniswap saw drops of 15.7%, 19.6%, and 17.4% in their respective TVLs.
At this point, Defi Llama data shows that all 34 top protocols have seen notable drops in their TVLs over the past 24 hours.
The drop in total defi TVL comes as the cryptocurrency market faces turbulence triggered by geopolitical concerns. Notably, the global cryptocurrency market cap plunged 13.4% over the past day, falling below the $2 trillion mark.
Additionally, the broad market decline has led to over $1 billion in liquidations over the past 24 hours. The leading cryptocurrency, Bitcoin (BTC), also fell below $50,000 for a few minutes earlier today.
On August 2, U.S. spot Bitcoin and Ethereum (ETH) ETFs saw notable outflows. BTC ETFs saw $237.4 million and ETH ETFs saw $54.3 million in outflows as investor sentiment shifted amid market-wide fear, uncertainty, and doubt.
