DeFi economic activity drops 15% in August —VanEck

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The decentralized finance ecosystem has suffered more setbacks in August as on-chain economic activity dwindled.

) in August, falling 21% in the month, notes the report. The results were exacerbated by UNI token negative performance of 33.5%, as investors sold off tokens to capture gains from July.

Another key metric for the ecosystem, the total value locked , declined 8% in August, from $40.8 billion to $37.5 billion, slightly outperforming Ethereum’s 10% slump in the month.Even though DeFi tokens had poor performance in August, the ecosystem witnessed positive developments throughout the month, argues the analysis.

“The growth of crvUSD has allowed it to become a significant contributor of revenue for the platform, with crvUSD fees exceeding fees collected from all non-mainnet liquidity pools in 3 of the 4 last weeks,” reads the report. Curve Finance’s governance token, however, has not shown promising signs of recovery since the exploit, with its price falling 24% in August to $0.45.“Due to the price decline, investors who bought CRV OTC from Michael Egorov last month are now only 12.

Curve Finance founder Michael Egorov had around $100 million in loans backed by 47% of the circulating supply of the protocol’s native token, CRV. As the CRV price dropped nearly 30% following the hack, fears of Egorov’s collateralized loan liquidation sparked concerns of contagious effect across the DeFi ecosystem.

 

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