The Drop in TVL Coincides with the Ongoing Crypto Market Selloff. To note is that the drop in the total value of digital assets locked in DeFi begun around the 2nd of September after a peak value of $9.512 Billion.
This coincides with the earlier observed crypto market sell-off that saw Bitcoin fall from $12k levels and retest $10,000 on four separate occasions
The total value locked in DeFi platforms has taken a huge hit by falling 22% since its peak value of $9.512 Billion.
- The total value locked in DeFi has dropped by 22% from its peak of $9.512 Billion
- The drop coincides with the recent crypto market sell-off that hit DeFi tokens hardest
- Additionally, the SushiSwap debacle might have accelerated an exodus of investors from DeFi
The reduction of assets locked in DeFi platforms was captured by the team at Unfolded via the following Tweet which also noted that this was DeFi’s first major correction.
First major DeFI correction down -22% from the peak
– Unfolded (@cryptounfolded) September 6, 2020
The SushiSwap Debacle Might Have Accelerated an Exit by Investors
Coincidentally, as the crypto markets were taking a beating, Chef Nomi of SushiSwap admitted to having sold his SUSHI bags. In his defense, Chef Nomi stated that he did for the community and selling his SUSHI was similar to how Charlie Lee sold his Litecoin bag to focus more on the project and community development.
Chef Nomi’s exit could have accelerated an investor exodus from DeFi platforms in fear that other project administrators might pull a similar move.
