DeFi's monthly total locked volume has declined for the first time since May, down 2.4% from the beginning of October

According to BlockBeats, on November 2, since October, the price of Bitcoin has risen and once exceeded the $14,000 mark. DeFi was all the rage this summer, and investors invested billions of dollars in these smart contracts to get rich returns. However, with the decline in liquidity mining returns and the increase in risks, the growth rate of DeFi is slowing down.

On one hand, DeFi’s growth seems unstoppable: The amount locked in DeFi contracts is increasing by nearly a billion every week. The industry peaked this week at $12.4 billion, up from about $1 billion in May. But DeFi’s growth has slowed: There was less cryptocurrency locked in decentralized finance smart contracts at the end of October than at the beginning of the month. It’s the first time that’s happened since the DeFi craze began this summer.

According to DeBank data, the total locked-in amount reached 14 billion US dollars on October 1. On October 31, the total locked-in amount dropped to 13.66 billion US dollars. This is the first time that the monthly total locked-in amount of DeFi has declined since the rise of liquidity mining. Rhythm believes that this may be because the income from liquidity mining has begun to decline, the risk of participating in mining has increased, many liquidity mining projects have not been audited, and smart contracts have vulnerabilities and theft incidents have occurred frequently. These factors have led to a decline in users' enthusiasm for liquidity mining.