MakerDAO returns to normal despite $8 billion drop in locked total value (TVL)

MakerDAO (MKR) Total Value Locked (TVL) plunged to new lows in the last week of May due to declining investor interest in decentralized finance (DeFi).

Maker was the third most locked-in decentralized application (dApp) by value throughout April, behind Curve and Lido.

According to Be[In]Crypto Research, Maker Lost 45% of Annual High TVL on Feb 10, 2022 TVL that day was in the $18.12 billion area, which had dropped to around $9.82 billion by May 24.

Source: MakerDAO TVL chart by DeFiLlama

MakerDAO enables the creation of DAI. As a growing ecosystem, there are over 400 services and applications such as games and decentralized financial platforms that incorporate DAI.

TVL fell sharply due to the full-market crypto market crash. Maker TVL fell 43% from $17.5 billion at the beginning of the year to over $9 billion in the last week of May.

Overall, Ethereum TVL fell 50% from $146.7 billion on January 1, 2022 to $72.93 billion on May 24, 2022.

Even though the total locked value has decreased by more than $8 billion, MakerDAO has become the dApp in terms of the most locked value.

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Source: TVL Rankings by DeFiLlama

MakerDAO now requires a relatively higher TVL than other popular dApps like Curve, Aave, Lido, Uniswap, Convex Finance, PancakeSwap, Compound, JustLend, Instadapp and SushiSwap.

MKR price reaction

MKR opened on February 10th at a trading price of $2,247.69 and reached a low of $984.81 on May 12th. It has since risen slightly and was trading at $1,311 at press time.

Overall, this equates to a 44% drop in MKR price over the past 15 weeks.

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Source: MKR/USD chart on TradingView


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