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DeFi Liquidity Ratios Rise as TVL and Stablecoin Supply Decline

The stablecoin and Ether ratios reached 21.40% and 18.80%, respectively, over seven days.

Updated 1 min read
An editorial illustration shows interconnected glass reservoirs at contrasting water levels against a pale background. / EconoTimes.ai
An editorial illustration shows interconnected glass reservoirs at contrasting water levels against a pale background. / EconoTimes.ai

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DeFi liquidity indicators moved in opposite directions over a seven-day span: the stablecoin and Ether ratios increased, while the dollar value of assets locked in protocols and stablecoin supply contracted.

Total value locked across DeFi protocols was $122.25 billion, a $1.34 billion decrease over the period. Stablecoin supply stood at $305.24 billion after falling $1.35 billion.

The stablecoin availability ratio gained 1.37 percentage points to 21.40%. Ether (ETH)'s ratio added 1.20 percentage points, reaching 18.80%.

Loans valued at $6.72 billion were less than 5% from their liquidation prices, a $395 million decline from the previous week. Real-world asset value locked fell to $4.04 billion, and Ethereum's share of DeFi TVL decreased to 57.79%.

TVL estimates the dollar value of assets counted by protocols at a given moment. Price changes can lower that figure while token quantities stay flat, so a decline alone does not confirm withdrawals, as EconoTimes' earlier explanation of DeFi TVL discusses.

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