DeFi Week in Review: Coin Price Pullback Leads to 1,228% Surge in Liquidation Volume, Significant “Shrinkage” in Locked Positions

140 DeFi concept coins fell by over 40% in 7 days.

DeFi Week in Review: Coin Price Pullback Leads to 1,228% Surge in Liquidation Volume, Significant "Shrinkage" in Locked Positions

DeFi’s average daily total lock volume fell 28.79% week-over-week, while DEX’s average daily trading volume increased about 35.63% from the previous week. Lending agreement liquidation volume surged about 1,228.88% week-over-week last week due to the sharp pullback in coin prices. 140 DeFi concept coins fell over 40% on a 7-day basis.

DeFi total lock volume fell 28.79% week-over-week, and total address count growth slowed significantly

According to DeBank’s data, in terms of trend, DeFi’s total lock volume dropped significantly last week. on May 22, DeFi’s total lock volume fell to around $75 billion, having fallen back to pre-April levels. Last week, DeFi’s average daily total lock volume was about $86.722 billion, down about 28.79% from the previous week. As of 11:00 p.m. today, DeFi’s total locked-in volume was about $67.740 billion, down about 37.29% from seven days ago.

The top five DeFi agreements with total lockups are currently Compound ($7.5 billion), Maker ($6.7 billion), PancakeSwap ($6.4 billion), Uniswap V2 ($6.2 billion), and Curve ($5.5 billion). The total lock volume of each protocol fell to varying degrees this week, with PancakeSwap falling the most from 7 days ago, by about 43.33%.

According to DuneAnalytics, DeFi’s total address count continues to grow, but at a slower rate. As of today, the total number of subscribers on DeFi has grown to 2,530,500, up about 3.05% from 7 days ago and about 50% slower than the previous week’s growth rate.

Total DEX volume exceeded $21.7 billion midweek to hit another record high, and the number of DEX addresses fell more than 37% week-over-week

While total lock volume declined last week, trading volume on the DEX improved. Last week, the average daily trading volume on the DEX was about $11.084 billion, up about 35.63% from the previous week. In particular, on May 19, total trading volume on the DEX reached approximately $21.738 billion, once again setting a new all-time peak, more than two times higher than the previous peak set on May 13. As of 11:00 p.m. today, DEX’s total trading volume was approximately $10.690 billion, up approximately 18.90% from 7 days ago.

The top 5 exchanges by volume are currently PancakeSwap, Uniswap V2, Mdex, Uniswap V3, SushiSwap, with their share of volume at 15.38%, 15.14%, 14.56%, 11.10% and 10.44% respectively. Since last week, PancakeSwap’s share has been decreasing day by day and the gap between the top three exchanges in terms of trading volume has now narrowed further.

Last week, the average daily number of DEX addresses was about 451,500, down about 37.41% week-over-week; the average share of DEX addresses to DeFi addresses was about 18.08%. Currently, the number of DEX addresses is about 293,300, with a 7-day decline of about 51.58%.

Total borrowings are at the lowest level this month, with average daily liquidation surging about 1,228.88% week-over-week

Last week, average daily borrowings were approximately $18.08 billion, down approximately 24.38% week-over-week. As of 11:00 p.m. today, total 24-hour borrowings on DeFi lending agreements were approximately $15.10 billion, a decrease of approximately 30.74% from seven days ago. Total borrowings are currently at their lowest level of the month. The top four agreements in terms of lending share were Compound (33.02%), Maker (28.69%), Aave V2 (27.68%), and Venus (8.07%). Among them, Compound’s share has remained largely unchanged from last week, while Venus’ share has been less than half of last week’s.

In terms of liquidation volume, affected by the sharp pullback of the high coin price, the liquidation volume of lending agreements reached an all-time high last week, with a daily average liquidation volume of about $151 million, a week-on-week surge of about 1,228.88%. As a result of the Venus Black Swan event, the liquidation volume on May 19 reached approximately $614 million, setting a new all-time record for single-day liquidation volume. The current liquidation amount is about USD 140 million, a 7-day increase of about 208.61%.

According to data on Messari as of 13:50 today, the 140 DeFi concept coins are down an average of about 43.42% over the last 7 days, a significantly larger drop than last week. Currently, the concept coin with a positive coin price increase in the last 7 days is BCPT, up 70.02%, currently quoted at about $0.0209, followed by TRU, up 13.55%, currently quoted at about $0.373. Among the mainstream DeFi concept coins, both UNI and AAVE had above-average 7-day declines of 47.94% and 47.87%, respectively. In addition, YFI, which had a good rally last week, is currently quoted back down to around $36,238, with a 7-day decline of about 44.38%.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/defi-week-in-review-coin-price-pullback-leads-to-1228-surge-in-liquidation-volume-significant-shrinkage-in-locked-positions/
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