🌎 Crypto Market Turbulence: DeFi TVL Plummets 19% in 24 Hours

The decentralized finance ecosystem has recorded significant losses as the crypto market drops below the $2 trillion mark. According to data from Defi Llama, the total value locked (TVL) in defi plunged by 19% over the past 24 hours, decreasing from $88.8 billion to $71.8 billion. This marks the first time since February 24 that the defi TVL has fallen to the $71 billion level.

The leading defi protocol, Lido Finance, experienced a 19.2% decrease in its TVL over the past day, falling to $23 billion. The native token of this liquid staking protocol, Lido DAO (LIDO), saw a 26% drop in the past 24 hours, trading at $0.98 at the time of writing.

Other notable protocols also recorded declines in their TVLs:

EigenLayer: 18.5% decrease
AAVE: 16.7% decrease, dropping below the $10 billion mark for the first time since May 2
Maker: 10.8% decrease
JustLend: 15.7% decrease
ether.fi: 19.6% decrease
Uniswap: 17.4% decrease

Data from Defi Llama indicates that the leading 34 protocols have seen significant declines in their TVLs over the past 24 hours.

The fall in the total defi TVL comes as the cryptocurrency market faces turbulence due to geopolitical concerns. Notably, the global crypto market capitalization decreased by 13.4% over the past day, falling below the $2 trillion mark.

Additionally, the market-wide decline led to over $1 billion in liquidations in the past 24 hours. The leading cryptocurrency, Bitcoin (BTC), also dropped below the $50,000 mark for a few minutes earlier today.

On August 2, spot Bitcoin and Ethereum (ETH) ETFs in the U.S. recorded notable 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).