Dharma monthly loan originations down 60% as users’ frustrations grow

After experiencing robust growth for the first four months of the year, Dharma has seen a drastic reversal. May loan origination volume was down 60% from April to $2.8 million, and June is on pace to look even worse. Based on June’s daily average volume so far, we project monthly loan originations to fall another 60% to $1.1 million.

In terms of loans outstanding, Dharma has kept things relatively stable, hovering around a balance of $9.1 million. On the other hand, Compound (a decentralized money market protocol and one of Dharma’s main competitors) experienced strong growth since the public launch of its revamped Compound v2 on May 23. It has since surpassed Dharma with $9.9 million loans outstanding spread across both Compound v1 and Compound v2.