In January, against the backdrop of a correction in the digital asset market, the volume of blocked funds (TVL) in DeFi protocols on Ethereum reached a record 43 million ETH, according to a ForkLog report.
Bitcoin and Ethereum last month updated local lows, pulling the rest of the market with them. The leader in drawdown was the management token Spell Token (SPELL) of the Abracadabra landing protocol — its rate fell by 70%.
The reason for the fall in the price of SPELL was the Wonderland Protocol scandal, which is associated with the founder of Abracadabra, Daniele Sestagalli. The incident also affected Terra's LUNA and SushiSwap's SUSHI. The latter fell by almost 52% over the month - the DEX team is part of the DAO Frog Nation, of which Wonderland is a part.
At the end of the month, all DeFi tokens from the top 20 by market capitalization were in the red zone.
The volume of blocked funds in the DeFi sector decreased by 22% and amounted to $188.61 billion. The Ethereum ecosystem continues to dominate. On January 27, the indicator expressed in ETH updated its historical maximum - 43.42 million coins. However, due to the fall in quotations, TVL in dollar terms fell by 24% to $118.51 billion.
The Fantom ecosystem became the fourth largest blocked funds. During January, its TVL increased by 76% to $9.36 billion. There are several reasons for this growth: a 370 million FTM (~ $ 777 million) incentive program, numerous integrations and interest in the Solidly project, which was announced by the creator of yEarn.Finance Andre Cronje and Daniele Sestagalli.