Amid Outbreak Of COVID-19 Decentralized Finance (DeFi) Market Collapses

Recently, a DeFi data aggregator, DeFi Pulse, released its report stating that in the year 2020, the decentralized finance-locked ETH is at its minimum which indicates that the industry and the ETH, itself would be experiencing a bearish scenario.

The data aggregator also stated that MakerDAO’s failing and effect of the COVID-19 on the global market are the two important reasons for ETH coming down.

Black Thursday Crash 

In the starting of the year 2020, the crypto field and decentralized finance apps were performing very well in the market. On February 15, 2020, the total value locked (TVL) by the DeFi app was $1.239 billion, which is considered to be an all-time high value of it. And at that time MakerDAO, Synthetix and Compound were top platforms for providing the app. But, in the next month as the market came down because of the Black Thursday crash, the TVL of DeFi app clampdown by 42.5 percent with the value at $712 million.

A report suggests that the volume of stored Ether, on February 05 2020, was 3.235 million ETH, but after the outbreak of CoronaVirus and MakerDAO fall the value stored on the DeFi platform started declining.

DeFi Market Gets Affected By Maker’s Zero Dollar Auction

On March 13, 2020, the MakerDAO auctioned over $8 million in ETH for zero dollars and because of which the value of ETH in the DeFi market collapsed to $558 million in a week which means the value came down by 46 percent.

The DeFi market did not remain untouched with the COVID-19, due to this pandemic the consumer behaviour in the global market changed very rapidly.

The pandemic has affected the global economy very badly, people are losing their jobs, the market is going down etc.

According to a report, for over the past three weeks, more than 10 million people in America have lost their jobs because of COVID-19 pandemic.

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