Terra Collapse Continues to Plague Defi — Value Locked in Cross-Chain Bridges Down 20% This Month – Defi Bitcoin News

Following the aftermath of the Terra blockchain fiasco, decentralized finance (defi) continues to feel the impact of the project’s fallout. Over the last 4 days, the total value of defi (TVL), dropped by 2.61%. Cross-chain bridges also lost approximately 20.3% over the 30 days.

Cross Chain Bridge Technology Value Slips 20%

Recently, over $100 billion USD was removed from total value locked in defi. TVL statistics are continuing to fall. The TVL for defi was $112.29billion. It is now at $109.35billion. Cross-chain bridge TVLs also fell a lot during this month, in addition to TVLs across twelve blockchains.

Dune Analytics’ 30-day metrics show that the TVL for cross-chain bridges has fallen 20.3%. Today, there’s $16.49 billion total value locked across 16 different cross-chain bridges. Aside from the TVL for cross-chain bridges, the daily unique ethereum depositors have also declined.

Polygon currently has the highest TVL of all 16 cross-chain bridges that Dune Analytics monitors. Polygon currently has $5.15 trillion. Polygon bridges are worth $5.15Billion. This represents 31.23% from the total $16.49B cross-chain bridge TVL.

Polygon is followed by Avalanche ($3.55B), Arbitrum ($3.2B), Fantom’s Anyswap ($1.87B), Near Rainbow ($1.86B), Optimism ($585M), Harmony ($229M), Moonriver ($154M), and Xdai ($122M).

Stablecoin USDC (USDC) is today’s top-performing crypto asset. It can be leveraged across cross-chain bridges. With $5.1 billion in locked capital, the stablecoin is closely followed by WETH and ETH at $4.57 trillion. With $1.9 Billion in today’s Tether (USDT), the third-largest stablecoin, other noteworthy cryptos can be leveraged across cross-chain bridges, such as WBTC or MATIC, DAI and MATIC.

There are two main reasons for defi’s loss. The Terra blockchain catastrophe took more than $40 Billion from defi’s ecosystem within a short time. Defi’s remaining billions are now leaving in a variety of ways, such as cross-chain bridges. This is because Terra users were shaken by it.

Billionaire investor and crypto proponent Mike Novogratz published a blog post yesterday covering the recent Terra blockchain fiasco and he said “the collapse dented confidence in crypto and defi.”

Let us know what you think of the lower confidence in the defi eco-system and the loss in cross chain bridge tech value. Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman has contributed more than 5,000 articles to Bitcoin.com News since September 2015. These articles are about disruptive protocols that are emerging.