Leading DeFi protocols, such as Maker [MKR], Aave [AAVE], and Curve [CRV], have witnessed a decline in their Total Value Locked (TVL) over the last few months. A continued bearish progression of the general cryptocurrency market further adds to the decline by putting the DeFi space at risk.
According to data from Defi Llama, the TVL of DeFi protocols hosted across different chains has declined since April’s general downturn. Marking an index of $229.94 billion at the beginning of April, the value of this has declined by over 65% in just a period of three months.
The strike on leading protocols, such as Maker, Aave, and Curve has been the most severe. The TVL for Maker, for example, has seen a decline from $15.18 billion to $7.53 billion in the last three months.
Similarly, Aave has registered a drop from $13.77 billion to $4.73 billion in its TVL within the same period. Seeing a decline from $20.76 billion to $4.95 billion in its TVL in the last three months, Curve registered an 80% drop.
In the light of the aforementioned instances, how have the respective native tokens of each of these leading protocols fared since April?
All misses, no hits
In the last 90 days, the prices of the MKR, AAVE, and CRV tokens have witnessed losses. At $2,085 per MKR token at the beginning of April, the crypto market bloodbath in the last three months has imposed a 57% decline on this token. At press time, it traded at $891. Within the period under review, the token’s market capitalization also registered a decline from $2.04 billion to $871 million by press time.
The ‘ghost’ token, AAVE, recorded a 72% drop in its price in the last 90 days. Exchanging hands at $56.52 per AAVE token at the time of press, the token fell from a high of $206 recorded at the beginning of April. Similarly, its market capitalization decreased by over 60% within the window period.
For the CRV token, it posted a 71% decrease in its price in the last three months. The token’s market capitalization also fell from a high of $1.23 billion to $406.62 million within the same period.
Network activity in the last 90 days
Within the last three months, the number of new addresses created on the MKR network registered a high of 260 on 11 May. Since then it has taken on a steady decline.
Standing at 100 at press time, a 61% drop in new addresses has been posted since May. Within the same period, the transaction volume for the token rose gradually to mark a high of 198,000 by press time.
Interestingly, AAVE also saw a high of 446 in the number of new addresses created on its network in mid-May. However, following in the footsteps of MKR, this went on to decline by 59% by press time.
The transaction volume for the AAVE token has been on a gradual increase and touched a high of 2.95 million on 21 June. This volume, however, has since been on a decline.
Network growth of CRV in the last 90 days has been quite abysmal. It touched several highs and several lows within this period. It went as high as 298 on 12 May and subsequently touched a low of 59 on 3 June. Transaction volume, on the other hand, registered an 84% decline after recording a high of 314 on 19 May.