Even during strong sales, DeFi protocols are getting more powerful and swallowing more cash, as evidenced by this week’s crypto market drop.
Although practically all cryptocurrencies had a significant price drop this week, capital is increasingly moving towards DeFi technologies.
The indication “Total Value Locked” in the DeFi market compared to the value of tokens or coins was studied by analysts from glassnode, who observed this favorable trend for the DeFi industry.
Despite the revisions, the DeFi procedures absorbed more and more capital, losing only -5 percent of the maximum TVL measured value during the sale, as seen in the graph below. However, it was as high as -16 percent in the cryptocurrency ETH and even higher in some tokens.
It’s also worth noting that DeFi TVL held up well at $170 billion, implying that the DeFi market outperformed the ATH, which was measured in May of this year. Ethereum and other tokens are still trading below their May all-time highs.
A truly intriguing observation comes after a comprehensive investigation of why TVL is expanding and is also more resilient than the value of tokens or coins. Stablecoin-centric protocols, which continue to expand and exhibit ever-increasing interest despite corrections, are currently boosting the value of the DeFi market. On the other hand, governance tokens and the NFT and Ethereum have suffered losses.