The total locked value (TVL) in decentralized finance (DEFI) experienced a significant drop, lowering more than 30% since its peak in December 2022.
The total locked value (TVL) in decentralized finance (DEFI) experienced a significant drop, fell by more than 30% since its peak in December 2022. Currently, the TVL amounts to around 94.49 billion dollars, against a summit of $ 137 billion recorded on December 17.
This drop is attributed to a difficult macroeconomic environment and the still maturation of the DEFI ecosystem.
Market players are struggling with uncertainty resulting from current inflation problems and geopolitical tensions.
Kevin Guo, director of Hashkey Research, noted that if the DEFI sector has experienced progress, he still does not have the maturity necessary to effectively integrate into institutional financial products. Complex interfaces and higher costs can dissuade retail investors, while experienced merchants remain dependent on the liquidity offered by the approved scholarships.
Vincent Liu, director of investments at Kronos Research, stressed the importance of innovation in the DEFI space to regain the momentum of the market. He also mentioned that potential changes in American prices and the next data on the consumer price index could influence a market resumption.
Despite current fluctuations, the director of research LVRG, Nick Ruck, said that DEFI remains a viable option for long -term investment.
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