DeFi Update: TVL, Yield Slump, Lending Protocols Euler, Morpho See Significant Adoption

The cryptocurrency market not only entered a bear market this year, but also experienced a series of disastrous events, with DeFi presenting dismal data such as TVL and plummeting yields.

The following content is compiled from Ignas | DeFi Research on Twitter. For more details and discussions, please refer to the original link.

DeFi researcher Ignas provides a concise summary of the latest research from OurNetwork:

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• Is DeFi still around?

• Which lending protocols are still growing?

Total Value Locked (TVL) in Lending Protocols Drops 75% Since January

Not all lending protocols are experiencing a decline; among the top four Ethereum-based lending protocols, two have shown growth in TVL:

• Euler Finance increased by 80%

• Morpho increased by 259%

Main Reasons for the Sharp Decline in TVL

1. Cryptocurrency market crash

2. Decrease in stablecoin yields

APY has dropped to below 2%, even lower than traditional financial returns.

Low Demand for Leverage Further Impacts DeFi Returns

In addition to market deleveraging, another reason is the significant decrease in token incentives; the daily token issuance for Aave and Compound has decreased by 99% and 98%, respectively, affecting TVL.

Who Uses DeFi: Degens

Based on the activity of different addresses across various DeFi protocols, the majority of active users, known as "Degens," continue to dominate the space.

Rise in Airdrop Hunters

Ignas pointed out that while DeFi activity among Degens is decreasing, wallets targeting all new projects, also known as "Shiny object" wallets, are increasing.

Diverse User Base on Uniswap

Uniswap not only leads in DeFi but also boasts the most diverse user base. As shown in the chart below, in the past month, wallets chasing after popular new projects ("Shiny object" wallets) have also become active on zkSync, Arbitrum, and StarkNet.