Ethereum’s TVL drops 30% in February as staking demand fades

The total value of locked Ethereum dropped from 27% to $ 97 billion in February, because the wider decentralized financial sector increased from $ 217 billion to $ 168 billion in the midst of liquidity outings.

Decentralized financeThe total locked value fell by almost 23% in February, going from $ 217 billion to $ 168 billion as market volatility, liquidity changes and capital schooling outings, pressed key protocols, explains Dappradar analyst Sara Gherghelas.

In a recent research reportGherghelas stressed that Ethereum (Ethn), which holds nearly 60% of DEFI’s liquidity, saw its TVL drop by 27% to 97 billion dollars in February. The decline was mainly due to the decrease in the liquidity of the liquid implementation protocols, notes the analyst. However, despite the decline, the domination of Ethereum in this area “remains undisputed”, according to Gherghelas.

Solana (GROUND) underwent the strongest losses in February, because its TVL dropped more than 30% to 15.4 billion dollars. The decline occurred after a strong January and was probably pulled by “the migration of profit and liquidity towards more stable challenge environments”, explains the analyst of Dappradar. In addition to this, activity has also slowed down on the key platforms based on Solana as Crypto Exchange Jupiter and Raydium.

While most of the big channels were faced with challenges, Berachain (He) It turned out to be one of the rare winners, reaching a TVL of $ 5.05 billion, according to data.

“The ascent of the chain is fueled by its model of proof of liquidity, which attracted users thanks to lucrative incentives and agriculture. While users are looking for high yields despite wider market reductions, Berachain is positioned as a key player in the evolving DEFI landscape. »»

Sara Gasshqhelas

BNB channel (Bnb) saw a smaller drop of 11%, helped by Stablecoin trading. Meanwhile, Tron (Trx) TVL dropped by 29%, probably due to the lower demand for Tether (USDT) Transactions. Aptos (Fit) was also one of the rare winners, increasing its TVL by 6% to $ 1.83 billion.

The fall of Ethereum in TVL occurs while the interest open to the long term for key cryptocurrencies has also dropped sharply. As made by Crypto.News, the merchants began to reduce long positions, with open interests falling in the middle of the concerns about the trade war and the difficult position of the Fed. Matrixport analysts believe Many traders expect clearer signals before entering the market.

Although the next Pectra upgrade, which aims to improve network features and the efficiency of costs, could provide a short -term boost, It’s not clear If these upgrades will be sufficient to reverse the drop in DEFI activity.