In a newly published report[1], leading crypto-assets data provider CoinGecko[2] found that the Decentralized Finance (DeFi)[3] ecosystem registered a 76% decrease in market capitalization over the last quarter. Between April and June, while the entire cryptocurrency market was plagued by a full-on bear run, DeFi market capitalization declined from $142 million to $36 million.
According to CoinGecko, the same can be attributed to the collapse of Terra and its stablecoin, UST, and a spike in DeFi exploits.
Source: CoinGecko
Daily active users in Q2
The report also found that the last quarter was marked by a 34.5% decline in Average Daily DeFi Users, compared to 1 April.
Interestingly, CoinGecko also found that despite the significant decline in DeFi market capitalization, activity with the ecosystem generally was above average. It stated further that although daily active users across DeFi protocols declined by up to 40%, “there were multiple instances in Q2 where the need for DeFi truly shined.”
“In early May, the number of DeFi users spiked during the Terra collapsed, as CEXs halted trading sporadically. As such, trading volumes on Curve Finance and Uniswap skyrocketed as holders were eager to sell their LUNA & UST. In the wake of Celsius’ withdrawal restrictions on 13 June, daily users of DeFi protocols spiked by 24%. In both events where centralized entities have failed, users have flocked to enjoy DeFi’s permissionless nature.”
Source: CoinGecko
DeFi multichain marketshare in Q2
Furthermore, it was reported that there was a 55.1% decline in DeFi Total Value Locked (TVL) across leading chains over the last quarter. Commenting on the performance of Ethereum, the report revealed that Ethereum increased its share of the total TVL of all chains from 54% to 60%. This, despite its overall TVL logging a
