In the defi lending industry, a lot has changed in the last 12 months as lending apps like Terra’anchor protocol have bitten the dust, and 71.95% of the total value locked up in defi lending protocols has evaporated.
From $37 billion to $10 billion: The top five defi lenders then and now.
Last year at this time, decentralized financial lending protocols held $37.41 billion in total value locked in (TVL), and the defi Aave protocol dominated with $12.87 billion. An archive.org snapshot from Jan. 10, 2022, shows that Aave’s TVL of $12.87 billion was higher than the TVL of the top five defi lending protocols on Jan. 17, 2023.
The data shows that the top five defiance protocols as of mid-January 2023 are Aave ($4.58 billion), Justlend ($3.02 billion), Compound ($1.85 billion), Venus ($813.63 million), and Morpho ($221.59 million). At present, the above five defiance protocols have a total value of approximately $10.49 billion.
On January 10, 2022, Terra’s Anchor protocol held about $8.5 billion in value, but today the defi protocol is in ashes. Anchor was one of the main components of the Terra ecosystem. Terra holders (USTs) deposited USTs for an annual rate of return of 20% compounded daily.
But in May 2022, the UST lost parity with the dollar, and Anchor holds only about $2 million today. Compound held the third largest TVL in terms of loan protocols with $8.09 billion at the time. On January 17, 2023, Compound’s TVL shrank to $1.85 billion.
The second largest challenge-lending protocol is today’s Justlend with $3.03 billion. Justlend, based on Tron, has risen from seventh to second place by going from $1.72 billion to $3 billion. Justlend is one of the only decentralized financial lending apps that has seen an increase in the past 12 months.
Last year’s fourth and fifth largest defi lenders, Abracadabra and Cream Finance, are no longer in the top five ranking and have been replaced by Venus and Morpho. Cream Finance is now in 20th place, dropping from $2.14 billion to $42.94 million.