Industry analytics firm DappRadar has just released a report on the situation, and it doesn’t look pretty. On May 13, the firm reported that DeFi’s total value locked (TVL) is down more than 40% over the past seven days.
It stated that the slump had been caused by investors flipping tokens into stablecoins in preparation to cash out into fiat. However, the massive slump in token prices would also have impacted TVL, a dollar-based figure.
At the time of writing, DappRadar was reporting a nominal TVL of $83.4 billion, a dump of 48% since the beginning of the year.
🔥 Total value locked in key lending protocols is dropping as investors started flipping tokens to stablecoins with the intention of cashing out to fiat. @terra_money @AaveAave
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