TVL Slows Fall as ECB and Fed Heads Call for DeFi Regulation | Crypto_NFT
TVL Slows Fall as ECB and Fed Heads Call for DeFi Regulation to Be Accelerated
The decentralized finance (DeFi) sector continues to attract increased attention from cryptocurrency investors. ForkLog has collected the most important events and news of recent weeks in a digest.
The volume of funds blocked (TVL) in DeFi protocols fell to $54.9 billion. MakerDAO became the leader with $7.67 billion, while Lido ($6.06 billion) and Curve ($5.99 billion) hold the second and third lines of the rating, respectively.
TVL in Ethereum applications fell to $31.65 billion. Over the past 30 days, the indicator has decreased by 6% (on September 8, the value was $33.63 billion).
Decentralized exchange (DEX) trading volume over the past 30 days was $40.6 billion.
Uniswap continues to dominate the non-custodial exchange market, accounting for 63.4% of total turnover. The second DEX in terms of trading volume is Curve (13%), the third is DODO (9.5%).
The heads of the ECB and the Fed called for increased regulation of the DeFi sector
During an online discussion organized by the Bank of France, the chairmen of the leading central banks called it justified to strengthen the regulation of the DeFi sector against the backdrop of its development.
The head of the US Federal Reserve (FRS), Jerome Powell, said there are structural problems in the DeFi ecosystem. In his opinion, one of them is the lack of transparency.
“The good news, I think, is that in terms of financial stability, the interaction between the DeFi ecosystem and the traditional banking system is not that great at the moment,” the Fed chairman said.
However, Powell warned that this situation "will not continue indefinitely." He pointed to "a real need for more appropriate regulation" as the decentralized finance sector expands.
The Fed chairman's speech paralleled the recent findings of Fed researchers. In their opinion, the lack of a clear regulatory framework threatens long-term financial stability risks from DeFi.
European Central Bank President Christine Lagarde recalled the collapse of Terra. In her opinion, this case "justifies" the tightening of regulation.
“If we do not participate in this game, if we do not participate in experiments, innovations in terms of central bank digital money, we risk losing the role of anchor that we have played for many, many decades,” she said.
The head of the Bank for International Settlements, Agustin Carstens, also hinted at the incident with Terra. He noted the role of stablecoins in DeFi and pointed out that their provision is "often inefficient". The official suggested that the sector has "structural problems and internal weaknesses."
