DeFi Operations Down 15% in August, Claims VanEck


Based on an investment manager firm, VanEck’s analysis, transaction volume across DeFi protocols fell to $52.8 billion in August, down 15.5% from July.

DeFi Industry Takes a Toll

VanEck also noted that stablecoins are still under pressure due to the present levels of interest rates around the world, particularly in the US. The results of this study have been calculated using data from VanEck’s MarketVector Decentralised Finance Leaders Index (MVDFLE), which monitors the performance of some of the biggest and most liquid tokens on DeFi protocols, such as Unisawp, Lido DAO, Maker, Aave, THORChain, and Curve DAO (CRV).

Numbers Got Worse Due to UNI Token’s Decline

According to the research, the DeFi index underperformed Bitcoin and Ether in the month of August declining 21% for that period. The numbers got worse by the 33.5% decline in the value of the UNI token, which investors sold in order to earn profits from the prior month.

The report contends that despite August’s poor performance for DeFi coins, the entire network experienced growth throughout the month. These changes encompass Maker and Curve’s stablecoin growth as well as Uniswap Labs’ decision to dismiss a class-action lawsuit. 

Growth of Stablecoins from Curve and Maker

In August, the stablecoin crvUSD experienced substantial growth, setting a new record of $114 million borrowed.

The report states: “The growth of crvUSD has allowed it to become a significant contributor of revenue for the platform, with crvUSD fees exceeding fees collected from all non-mainnet liquidity pools in 3 of the 4 last weeks.”

US Agencies Target DeFi

Notably, an article published just recently by TheCoinRise claims that the US Commodity Futures Trading Commission (CFTC) has targeted three DeFi protocols for enforcement action for failing to register a number of derivatives trading offers. All three companies were charged by the agency with offering unlicensed leveraged and margined retail commodities transactions in digital assets. 

Additionally, it was reported in May that the US Department of Justice (DOJ) is cracking down on hackers and exploiters using Decentralised Finance (DeFi) in the wake of rise in illicit crypto activity.

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