Altcoins, Cryptocurrency, DeFi (Decentralized Finance), News, Price Analysis

MakerDAO: It’s a Bumpy Path to Recovery with MKR losing 37% and TVL dropping 10%

The present TVL (total value locked) across all decentralized finance (DeFi) networks hovered at $59.18 billion during this publication. DeFi network has struggled amidst a broad market downturn, which has deteriorated the crypto space since early August.

DeFi market TVL opened the month at $64.27 before slumping by 8%. Meanwhile, the general market slump plus several DeFi hacks in the year’s first half saw the TVL plunging by 68%. However, the bullish market recovery in July had the TVL rebounding to gain more than 20% (DeFiLlama data).

While publishing this post, the DeFi market total value locked traversed April 2021 zones. Meanwhile, MakerDao currently holds 13.16% of the overall market, with its TVL at $7.79 billion. However, how has the network performed so far in August under the general bearish market influence?

So Far, Not so Good

MakerDao started the new year with $17.5 billion TVL, following the decentralized finance boom in late last year. However, reversals saw its TVL plummeting by more than 55% in 2022’s initial six months. MakerDao’s total value locked has lost 50% of its January figure as of 30 June.

However, the protocol joined July’s momentous rally, and MakerDao noted a swift 12% TVL rally to conclude the month with $8.63 billion TVL. Meanwhile, MakerDAO’s TVL has dropped around 10% within the last 26 days as the crypto market remained bearish due to the overall financial space downtime.

As for the protocol’s daily revenue, Token Terimanal data shows that the metric declined consistently within the past few months. The figure slumped by 8% over the previous month. Meanwhile, MakerDAO’s daily revenue dropped by 52.9% within the last six months. Its fully diluted market cap slumped by 45% during that timeframe.

Moreover, Dune Analytics data showed a sustained drop in yearly revenue from several asset classes housed in the protocol since early 2022. While writing these lines, the value of MakerDAO’s total assets wavered at $6,571,802,698.

What of MKR?

Coinmarketcap data shows the platform native coins, MKR, traded at $772.05 during this writing. Meanwhile, it had plunged by 37% from early August levels of $1,065. Meanwhile, the network’s trading volume rallied to an $861.7 million daily high before embarking on downtrends.

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