DeFi Shows Early Signs of Revival As Institutional Inflows Trickle In


Inflows into the DeFi sector witnessed an uptick as the wider crypto market recovered and investor sentiment improves.

Decentralized finance (DeFi) has had a rough go so far in 2022, and data from Messari shows the top ten-ranked DeFi assets currently down between 10% to 50% since the start of the year.

One of the positives is that the situation may change soon as funds have begun to flow back into the Decentralized finance ecosystem following a month of declines as data shows institutional and retail funds returning to crypto markets.

Total Value In All DeFi Platform Has Risen

Data from Defi Llama shows that the total value locked in all of DeFi platforms has climbed to $211.1 billion on February 11, up from a low of $185.14 billion on January 31.

A closer look at the individual protocols that contribute to the total TVL shows that the biggest drawdowns in TVL over the past 30 days were in stablecoin-focused protocols like Curve (CRV) and Convex Finance (CVX), which appeared to suffer from the collateral damage of popular rebase projects like OlympusDAO (OHM) and Wonderland (TIME) imploding.

Projects that were closely integrated with Curve also saw significant outflows, with Yearn. Finance experiencing a 28.57% decline in TVL and Abracadabra. money seeing its TVL fall by 46.3% amid the controversy surrounding members of its development team.

Every crisis presents an opportunity, however, and in this instance, it is the decentralized stablecoin protocol Frax (FXS) that has benefited from the stablecoin shakeup. The protocol’s TVL has increased 35.81% over the past 30-days.