Ether, Ethereum’s native token, keeps losing value. It’s dropped more than half of its last year’s value and is still below $2,000.
This is accompanied by the news that investors have withdrawn $250 million from Ethereum investment funds this year. In comparison, Ethereum’s two direct competitors, layer-one blockchain protocols Solana and Cardano, have gained $104 million and $9 million in investments, respectively.
Ethereum’s troubles reflect the recent decline of interest in the overall decentralized finance (DeFi) system. This happened after a collapse on May 9 in TerraUSD (UST) and Terra (LUNA) tokens, which are a part of Terra’s algorithmic stablecoin ecosystem.
Ethereum’s future is still closely tied to DeFi, as the majority of that market’s financial apps are hosted on Ethereum. The network’s Total Locked Value (TLV) amounts to $68.71 million, which is almost 65% of DeFi’s entire TLV. That number is significantly lower than the one since before the Terra crash, which amounted to $100 billion.