The two largest decentralized exchanges (DEXs) on the TON chain, STON.fi and DeDust, have seen their total value locked (TVL) tumbling by over 60% since the end of July, when both of them saw record levels in liquidity value.
DeDust, which almost touched the $400 million mark in TVL on July 21, is now left with $111 million worth of crypto in its deposits, down 68% over the last month and over 70% from its recent peak, as shown in the chart above.
Elsewhere, STON.fi, whose TVL peaked on July 31 at $373 million, has $139 million in its pools as of this writing, down over 60%.
The TVL decline was triggered by a broader bearish sentiment in the crypto market, with the aggregate TVL of all DeFi projects dropping from over $100 billion in mid-July to less than $78 billion at the beginning of August.
However, while many major DeFi apps have recovered or limited their losses, DeDust and STON.fi have further declined after the arrest of Pavel Durov, the co-founder and CEO of Telegram, which is closely associated with the TON ecosystem. Although TON is officially separated from Telegram due to the regulatory pressure on the messaging app, they are related through a partnership.
Durov’s arrest in France on August 24 triggered a 20% drop in the price of Toncoin.
Since Toncoin is the most deposited crypto asset in DeDust and STON.fi, its price decline has affected the DEXs’ TVL. On the Saturday before the arrest, STON.fi’s TVL stood at $233 million, while DeDust held $210 million in its pools.
TON’s entire DeFi ecosystem has lost over 40% this week, making it the worst performer among the top 100 blockchains in DeFi. The network has a TVL of $307 million, down from $508 million on Saturday.
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