Recently, the decentralized finance ecosystem has suffered significant losses and a major blow due to the increasing security issues. The total value locked (TVL) in the DeFi ecosystem has dropped below the $40 billion mark and reached $37.8 billion, according to the latest data. Many decentralized finance protocols that are ranked in the top 20 based on TVL have experienced double-digit percentage declines in the past month.
Security Issues in the DeFi Ecosystem
As cryptocurrencies gained worldwide popularity over the years, security issues have also increased. Particularly in the DeFi ecosystem, various security problems have emerged. In recent times, numerous decentralized finance (DeFi) protocols have faced cyber attacks. These attacks have resulted in the theft of significant amounts of crypto assets from hacked DeFi protocols.
The rising security issues in recent times have dealt a significant blow to the decentralized finance ecosystem. The total TVL of DeFi has dropped below $40 billion.
DeFi’s Total TVL Drops Below $40 Billion
Due to the increasing security issues, the total TVL of the DeFi ecosystem, according to DeFiLlama’s latest data, has dropped below $40 billion and reached $37.8 billion. Among the top 10 DeFi protocols based on TVL, the protocol with the largest percentage decrease in TVL in the past month is Convex Finance. Convex Finance has experienced a decrease of around 30% in TVL over the past month.
Many of the top 20 decentralized finance protocols have experienced double-digit percentage declines in TVL in the past month. The leading DeFi protocol based on TVL, Lido, has also seen a decrease of around 6% in the past month.
