The current crypto market fall has had an especially negative impact on the DeFi space. Although Bitcoin has seen a 50% drop since November 2021, some of the most popular DeFi protocols, such as Compound, AAVE, and MakerDAO, have seen even bigger drops. In addition to heavy liquidations, the DeFi industry has recently seen developer exits and user emigration.
Pedro Herrera, senior data analyst at tracker DappRadar, stated:
“In terms of crypto winter, DeFi dapps have never experienced it. They’ve had crashes before, but this one feels like foreshadowing. Approximately 20% of the apps that account for 80% of the industry’s value will likely survive. We may also see protocols that aren’t often used vanish.”
According to DappRadar, there are 150 DeFi apps on the market right now, with a total of $107 billion in user cash. Since the start of 2022, there has been a $30 billion drop in the crypto market.
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