A Look at DeFi Treasuries and Protocol Revenues

The cryptocurrency markets have seen a significant drawdown and deleveraging since November 2021. The total cryptocurrency market capitalization fell from a peak of $3 trillion to about $830 billion at the time of writing, representing a decline of more than 70% within a span of 7 months. 

With the broader market downturn in the crypto space, the DeFi ecosystem has taken a large hit as well. The total value locked (TVL) across DeFi platforms on different blockchains fell from a peak of more than $250 billion to approximately $70 billion at the time of writing, recording a similar decline of around 70%. The decline in TVL can be attributed to both the fall in crypto assets prices as well as waning interest in the crypto markets as participants embrace the onset of a bear market.