Ethereum has been the preferred blockchain network for thousands of developers and millions of decentralized application users, ever since decentralized finance emerged by a group of Ethereum entrepreneurs and developers in 2018.

The mass bear market extended that followed the new milestones reached in 2021, and unfortunately, Ethereum was not rescued as the leader of the DeFi sector as the network gave up significant proportions of its value in the decentralized finance sector.

On August 1, Ethereum’s closed value was $37.32 billion, dropping to $34.36 billion on the last day of the month, according to DeFiLlama data.

TVL Ethereum Locked Down Over $60 Billion From Its Peak:

After hitting new highs in 2021, Ethereum made several attempts to constrain the bears in January when it reached an annual peak of $100.99 billion.

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By the end of August, the TVL closed value was more than twice below this statistic.

To put it simply, the price of Ethereum has fallen by $66.6 billion in the past eight months.

Ethereum’s locked value is largely dependent on decentralized applications:

Like other smart contract networks: Solana, Binance, Tron, Avalanche and Fantom, the total value of a locked Ethereum is determined primarily by the performance of the decentralized applications present in its ecosystem.

MakerDAO, the largest dApp on Ethereum, lost 5.21% of its value at around $8 billion.

While Lido, a quota protocol, lost more than $6 billion, or 1.8% of its value.

This did not deliver decentralized trading platforms (DEX) such as Uniswap and Curve Finance.

Uniswap, the largest DEX by trading volume, recorded a trading volume of less than $40 billion for the second month in a row and reached nearly $39 million in August.

Dune Analytics data showed that during the same period, Curve Finance reached an annual low recorded around $6 billion in volume.

AAVE, one of the most popular dApps, fell 2% to around $4.6 billion, while yield protocol Convex Finance and lending platform Compound fell 4% and 8.32%, respectively.

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However, despite the decline in liquidity and the decline in value, Ethereum is still the king of DeFi.

Despite sinking more than $60 billion in TVL closed terms since January 5, Ethereum continues to maintain its leadership over other blockchains despite the number of deployments DApps have made on more scalable networks.

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