At the end of May, Bitcoin and Ethereum fell by 15.6% and 28.8%, respectively, and the total value of assets in the DeFi segment fell by 43%. This is stated in the ForkLog report.
The collapse of the Terra ecosystem provoked a protracted market correction. On May 12, the first cryptocurrency hit $26,700, the lowest since December 2020.
The price of Ethereum tested the $3000 level, but failed to gain a foothold above it. On May 27, the cryptocurrency reached a local low near $1,700. The last time the asset was at this level was in July 2021.
BTC/USDT daily chart on Binance exchange. Data: Trading View.
Daily chart of ETH/USDT on the Binance exchange. Data: Trading View.
Locked funds (TVL) in dapp smart contracts fell by 43% to $117.48 billion.
Dynamics of the cost of funds involved in the DeFi sector. Data: DeFi Llama.
The second-ranked ecosystem in TVL, Terra, lost out to BNB Chain ($9.13 billion as of June 1) – its own indicator collapsed from $23.62 billion to $0.05 billion.
The volume of funds blocked in smart contracts of the undisputed leader – Ethereum – decreased from $108.83 in April to $71.98 billion. The Tron-based application ecosystem came in third place, whose TVL grew by 48% over the past month ($6.34 billion) .
Top ecosystems by value of blocked funds, billion $. Data: DeFi Llama.
Against the backdrop of a market correction and the collapse of Terra, all DeFi tokens from the top 20 by capitalization turned out to be in the red zone.
The yEarn Finance (YFI) project token showed the worst dynamics, losing more than 53%. In second place is the native token of the cross-chain protocol THORChain (RUNE). Its quotes fell by 52%.
Top 20 DeFi coins by market cap. Data: Messari (as of 06/01/2022).
Among the projects on Ethereum, the leadership in TVL passed to the Aave landing platform ($11.61 billion). In second place is MakerDAO ($9.89 billion).
Top 5 DeFi projects based on Ethereum by value of blocked funds, billion $. Data: DeFi Llama (as of 06/01/2022).
Shares of crypto-related public companies reacted to the negative background in the same way – by falling. At the end of May, Galaxy Digital and Coinbase securities lost 42.38% and 30.93%, respectively.
Riot Blockchain, Hut 8 and Marathon Digital were down 28.74%, 28.37% and 34.25%.
Interest in non-fungible tokens declined again in May. The dynamics in the segment was reflected by the flagship marketplace OpenSea — the trading volume on it reached $2.48 billion, which was the lowest level since November 2021. The fall was also demonstrated by the number of searches for “nft” in Google.
The Bitcoin Industry by the Numbers column is sponsored by the global blockchain ecosystem Binance.
Recall that JPMorgan analysts admitted that the crypto winter will be short-lived due to the influx of venture capital into the industry.