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DeFi Pulse: the volume of crypto assets blocked in the DeFi protocols is reduced

DeFi Pulse: the volume of crypto assets blocked in the DeFi protocols is reduced

The dollar value of crypto assets locked in DeFi protocols has started to decline. This is the first time this has happened since the decentralized finance boom began in the summer.

During the summer and the first two months of the fall, the decentralized finance (DeFi) industry grew rapidly. Investors have locked up billions of dollars in smart contracts for DeFi protocols.

However, now the growth rate of the industry has started to slow down. According to DeFi Pulse, the dollar value of crypto assets locked in DeFi protocols was less at the end of October than at the beginning of the month.

Over the past five months, the value of crypto assets locked in DeFi protocols has grown by almost a billion every week. At the beginning of the year, this figure barely exceeded $1 billion, while on September 18 it reached $13.2 billion.

According to DeFi Pulse, on October 1, $11.28 billion worth of crypto assets were blocked in the DeFi protocols, and on October 31, $11 billion was blocked. At the same time, in August, the total amount of blocked assets more than doubled: from $4.04 billion to $9.37 billion.

The slowdown in the DeFi market may be due to the fact that some protocols are no longer as profitable as they used to be. In addition, many new projects are not as large as existing ones, and are not launched as quickly.

According to a recently published joint report by the analytical firm DappRadar and the Monday Capital fund, most DeFi projects have a high degree of centralization due to the token distribution model.