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Ethereum (ETH) TVL Loses More Than $2.9B as Merge Approaches

Ethereum saw a further decline in total value locked a few days to the highly anticipated “Merge” due to a continuous drop in the amount of liquidity poured into decentralized finance (DeFi). 

Ethereum has been the go-to blockchain for thousands of developers and millions of dApp users ever since decentralized finance was coined by a group of entrepreneurs and Ethereum developers in 2018. 

An overall bearish market that followed the new milestones reached in 2021 earlier in the year has extended into the third quarter of the year. Unfortunately, Ethereum as the leader of the DeFi sector has not been spared as the chain shed 7% of its opening day value locked. 

On Aug. 1, Ethereum TVL was $37.32 billion, and declined to $34.36 billion on the last day of the month, according to data from DeFiLlama.

Source: Ethereum TVL Chart by DeFiLlama

Ethereum TVL Falls More than $60 Billion off Year’s Peak 

After reaching new highs in 2021, Ethereum made several attempts to shackle off the bears in January when it reached a yearly peak of $100.99 billion. 

TVL by the close of August was more than two times below this statistic. To put it simply, Ethereum has sunk by $66.6 billion in the last eight months. 

Ethereum TVL Largely Reliant On dApps 

Like other smart contract chains such as Solana, TRON, Binance Smart Chain, Avalanche, and Fantom, Ethereum total value locked is primarily determined by the performance of decentralized applications housed in its ecosystem. 

MakerDAO, the largest dApp on Ethereum lost 5.21% of its value locked to around $8 billion. Lido, a liquid staking protocol with more than $6 billion locked, shed 1.8% of its value. Decentralized exchanges (DEX) such as Uniswap and Curve Finance were not spared. 

Uniswap, the largest
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