DeFi TVL Drops to the Lowest Levels since June 2021 The recent downturn in crypto markets has not only affected retail investors but also decentralized finance.

According to DeFi Llama (popular resource and aggregator), the total value of all the chains has fallen to levels last seen in June 2021. Bitcoin, for one, has plunged deep into the “Extreme Fear” zone as it hit its lowest reading in more than two years on the BTC Fear and Greed Index this week. DeFi markets weren’t immune to the widespread negative sentiment either. DeFi Llama’s data revealed that the TVL fell to $140 billion in May 21st, a drop of more than half since the start of the year. Ethereum, which holds a large share of the locked-value, was also a market leader. It lost half its value, from $187 billion in Jan to $92 billion by the time of writing. Avalanche also observed a similar trend to TVL across all DeFi protocol on its blockchain. It currently stands at $6.49 trillion, down from the record $13.7 billion set in December 2018. Solana’s infrastructure had come under intense criticism for its multiple outages. The mitigation measures that the devs announced are yet to help the layer 1 blockchain protocol’s TVL emerge out of the yearly lows, which hovered near $4.5 billion. Not only is there the contagion effect but also the fact that this year’s DeFi sector was a fertile ground for fraud. CertiK, a blockchain security company and Web3 were recently revealedDeFi users were robbed of more than $1.6 Billion in crypto, which is far greater than the sum stolen in 2020–2021.