At the start of every month, we recap moves in one of crypto’s star indicators — Total Value Locked. It helps paint a picture of which blockchains, protocols, and projects are used in the realm of web3 and crypto.
TVL is one of the leading indicators that crypto maximalists can lean on to glean value — or disconnects in valuations — in various projects and chains. Some leading indicators such as market capitalization are affected largely by market participants, but revenue and TVL are a different story. They reflect realized value.
In mid-May, we did a “special edition” of our TVL franchise after the collapse of the Terra blockchain. However, to start off June, DeFi’s total TVL is sitting at $106.6 billion according to DeFi Llama.
Here’s a few conclusions which are now crystal clear after the collapse of Terra:
📈 Terra’s collapse freed up TVL dominance for $ETH, $BNB.
😲 The Tron chain is the biggest benefactor from the collapse of Terra, in part because of the launch of its own Terra-esque stablecoin, $USDD.
👀 The only protocol (with a TVL >$1 billion) with a rise on the month was JustLend. The Tron-based protocol is where the chain’s Terra-esque new stablecoin can be staked for high interest rates.
🦢 Collateral-backed cryptocurrencies like $DAI survived yet another “black swan”; its issuer, MakerDAO, is back at #1 among protocol TVL.
Since the collapse of DeFi in mid-May, the environment has changed very little. Most chains and protocols are still down double-digits on the month. And while some have shown inflows week-over-week, but they have been insufficient to water down one of DeFi’s worst months in recent history.
Outside of the proven DeFi projects, a few protocols — mostly high-risk, new protocols with TVLs under $1 billion— really proved their stuff this month:
📻 RadioShack (yes, that RadioShack) launched its own decentralized exchange after its IP was bought by internet celebrity Tai Lopez. Its TVL rose +342% this month, in spite of all the losses in DeFi, to $32 million.
Ethereum and Solana-based lending and borrowing marketplace Maple saw its TVL rise by +286%, including a 153% increase in just the last seven days, to $82 million. The protocol helps institutions like Alameda Research, Genesis, and Abra borrow money from on-chain lenders.
Arrakis Finance continued its climb, nearly doubling this month. It sat just below a $1 billion TVL today at $979 million. The Gelato Network spinoff is currently allowing users to lock $GEL for a share of the forthcoming $SPICE airdrop.
That’s a wrap for this edition of our TVL franchise. Still curious what’s up? Check out DeFi Llama!