The decentralized finance ecosystem has recorded significant losses as the crypto market falls below the $2 trillion mark.
According to data from Defi Llama, total defi total value locked (TVL) plunged by 19% over the past 24 hours, falling from $88.8 billion to $71.8 billion. This marks the first time since Feb. 24 that the defi TVL has hit the $71 billion mark.
The leading defi protocol, Lido Finance, saw a 19.2% decrease in its TVL over the past day, dropping to $23 billion. The native token of the top liquid staking protocol, Lido DAO (LIDO), plunged by 26% in the past 24 hours, trading at $0.98 at the time of writing.
EigenLayer, AAVE, and Maker also recorded 18.5%, 16.7%, and 10.8% declines in their TVLs, respectively. Following the drop, AAVE’s TVL fell below the $10 billion mark for the first time since May 2.
Moreover, JustLend, Ether.fi, and Uniswap witnessed 15.7%, 19.6%, and 17.4% declines in their respective TVLs.
Data from Defi Llama indicates that the leading 34 protocols have seen notable declines in their TVLs over the past 24 hours.
The fall in total defi TVL comes as the cryptocurrency market faces turbulence triggered by geopolitical concerns. Specifically, the global crypto market capitalization plunged by 13.4% over the past day, now sitting below the $2 trillion mark.
Additionally, the market-wide decline has led to over $1 billion in liquidations in the past 24 hours. The leading cryptocurrency, Bitcoin (BTC), also dipped below the $50,000 mark for a brief period earlier today.
On Aug. 2, spot Bitcoin and Ethereum (ETH) ETFs in the U.S. recorded significant outflows. BTC ETFs saw $237.4 million and ETH ETFs witnessed $54.3 million in outflows as investor sentiment shifted amid market-wide FUD (fear, uncertainty, and doubt).
