User Activity in DeFi Sector Down 15% in August
On-chain analytics showed that the volume of funds exchanged in the DeFi ecosystem fell to $52.8 billion in August 2023, down 15.5% from July. A drop in TVL to $37.5 billion was also recorded.
Economic activity of users of the decentralized finance ecosystem declined by 15.5% in August. Such conclusions were reached by analysts of the investment company VanEck, having studied the efficiency of the most liquid assets in the DeFi ecosystem.
According to the MarketVector Decentralized Finance Leaders (MVDFLE) index, the volume of funds exchanged in the DeFi ecosystem fell to $52.8 billion. In total, the DeFi index dropped by 21% during the month. Analysts also noted an 8% drop in the sector’s total value locked (TVL), from $40.8 billion to $37.5 billion.
The main reason behind the underperformance, according to VanEck analysts, is the liquidation of UNI tokens, which reduced the asset’s value by 33.5%. However, despite the poor performance, the DeFi ecosystem experienced some positive developments in August. Among them are:
- Uniswap Labs won the lawsuit;
- a rise of the stablecoin crvUSD (CRVUSD), whose market cap hit a new all-time high of $114 million in August;
- an increase in the market capitalization of the stablecoin Dai (DAI) to $5.4 billion.
Analysts pointed out that stablecoins were responsible for the biggest impact on the DeFi ecosystem. Stablecoins, in turn, are under significant pressure from the current levels of global interest rates and the close attention of regulators.
August saw a decline in trader activity on centralized crypto exchanges, with the total trading volume falling to $2.09 trillion.