Ethereum's DeFi sees recovery after losing over $300 million

The crypto market crash that took place on March 12th saw Bitcoin spiral down by over 50%, but the world's largest cryptocurrency was not the only one to suffer. While many were questioning the fate of the crypto industry, major platforms connected to digital assets registered huge setbacks, with Ethereum's DeFi being hit especially hard.

The data provided by DeFi pulse shows that DeFi lost over $300 million in TVL (Total Value Locked) on March 12th and 13th. The TVL after the crash sat at $556 million, while previously being at $889 million.

Fortunately, the recovery process has already started after Bitcoin's price stabilized just below $5,500, and the current charts are showing that DeFi now has a TVL of $656 million. Even so, the figures are significantly below the pre-crash levels.

The amount of locked DAI was also affected by a major value drop, which caused a drop from $83.64 million to only $48 million. In other words, Maker saw a drop of nearly 10% in only 24 hours.

DeFi overcomes the difficulties

Ethereum itself saw a massive price crash that followed that of Bitcoin, and many now view the development as a testing period for DeFi's lending and borrowing. Also, according to a stakeholder's call that took place on Thursday, MakerDAO allegedly even went on to consider an emergency shutdown.

The crash was also disruptive to DeFi's Oracles, which were unable to keep up with the constantly changing price feed information that they are supposed to deliver to traders. As a result, traders were restricted from executing trades without paying inflated transaction charges.

AZ#A#ZAZ#AaaQQQQQQQQQQQA2Even MakerDAO protocol was majorly affected as a result of the Oracle pricing problem, although the specifics were reported to still be under investigation. However, while the incident ended up being quite a severe performance test, and the ecosystem saw major disruption, it managed to recover quite quickly and it is currently reported to be healthy.