The total value of Ethereum fell 27% to $ 97 billion in February, because the broader decentralized financing sector fell from $ 217 billion to $ 168 billion in the midst of liquidity issues.
The total value of the decentralized finances fell by almost 23%in February, from $ 217 billion to $ 168 billion as market volatility, liquidity shifts and capital outflows under pressure under pressure key protocols, says the analyst Sara Ghaghelas of D -Adar.
In a recent research reportGherdhelas pointed out that Ethereum (ETH), which owns nearly 60% of Defi’s liquidity, saw TVL fall 27% to $ 97 billion in February. The decline was mainly due to a lower liquidity in liquid insert protocols, the analyst notes. Despite the decline, however, the dominance of Ethereum in this area remains ‘undisputed’, by Ghaghelas.
Solana (SOL) suffered the biggest losses in February when his TVL fell by more than 30% to $ 15.4 billion. The decline came after a strong January and was probably powered by “profit and liquidity migration to more stable Defi environments,” says the Dapadar analyst. Moreover, the activity also delayed on important solana -based platforms such as Crypto Exchange Jupiter and Raydium.
While most major chains were confronted with challenges, Berachain (Bera) turned out to be one of the few winners, according to data a TVL of $ 5.05 billion.
“The rise in the chain is fed by the proof-of-liquidity model, which users attracted by lucrative liquid influence and yield of agricultural stimuli. As users look for a high return, despite a broader market falls, Berachain positions himself as an important player in the developing Defi landscape. “
Sara Ghaghelas
BNB chain (BNB) saw a smaller drop of 11%, helped by the trade in Stablecoin. In the meantime, Tron’s (TRX) TVL fell by 29%, probably because of the weaker demand for Tether’s (USDT) transactions. APTOS (APT) was also one of the rare profit and increased its TVL by 6% to $ 1.83 billion.
Ethereum’s Drop is in TVL because Futures open interest in important cryptocurrencies also fell sharply. As Crypto.News reported, traders have started reducing long positions, where Futures open interest falls in the midst of concern about the trade war and the heavy attitude of the FED. Matrixport analysts believe that many traders are waiting for clearer signals before they re-enter the market.
Although the upcoming Pectra upgrade, which aims to improve the network functionality and the costs of the reimbursement, can offer a boost in the short term, it is unclear whether these upgrades will be sufficient to reverse the decline of defi-activity.
