During the Coin Slump, DeFi Deposit Volume Plummets... NFT Market Also Takes a Direct Hit

DeFi Deposit Size Falls to February 2021 Levels
Liquidity of DeFi-Related Coins Like Ethereum Decreases
Trading Volume on NFT Marketplaces Like OpenSea Also Plummets

As the downturn in the virtual asset market prolongs, the scale of DeFi (Decentralized Finance) deposits is showing a declining trend. DeFi stands for Decentralized Finance, referring to financial services implemented on blockchain networks without going through traditional financial institutions such as banks, securities firms, or insurance companies.

According to DeFi analysis platform DeFiLlama, as of the 19th, the total DeFi deposit amount was recorded at $35.37 billion (approximately 48.05 trillion KRW). At the beginning of this year, the deposit scale was around $38.02 billion, and on April 16, it surged to $52.89 billion. However, it has continued to decrease, reaching the lowest level since February 2021.

In the DeFi market, the deposit scale began to increase significantly after reaching $1 billion around May 2020. The recent deposit scale is similar to the level when the DeFi market was just beginning to grow.

The recent decrease in total DeFi deposits is due to the prolonged downturn in the virtual asset market, falling prices, and reduced liquidity. Amid ongoing concerns about tightening by the U.S. Federal Reserve (Fed) and escalating geopolitical tensions in the Middle East, the virtual asset market has not escaped the so-called "crypto winter."

As investment sentiment toward risky assets deteriorates, Bitcoin-centered trading dominates the current virtual asset market, with Bitcoin's share exceeding 51% of the total market capitalization. Coins playing major roles in the DeFi market, such as Ethereum, Tron, and Solana, have shown weak prices or reduced trading volumes. Ethereum-related deposits stood at $18.89 billion (approximately 25.64 trillion KRW) as of the 19th, down by $12.41 billion from the year's peak of $31.3 billion on April 15. During the same period, Ethereum's price dropped from the $2,100 range to $1,550, and daily trading volume plunged from $8 billion to $4.3 billion.

Meanwhile, non-fungible token (NFT) transactions have also sharply declined. The global NFT trading platform OpenSea recorded a daily trading volume of 1,470 Ethereum as of the 18th, a 78.13% decrease compared to 6,720 Ethereum at the beginning of this year. Additionally, the popular NFT marketplace Blur saw its daily trading volume drop by about 80%, from 9,110 Ethereum to 1,870 Ethereum during the same period.