On Monday, the strong cryptocurrency sell-off in the markets caused significant unrest for both projects and organizations. In popular decentralized finance, or DeFi, Aave’s lending protocol, utilization rates have fallen for nearly all stablecoin borrowing. In particular, borrowing for Binance USD (BUSD) is now just 30% down from a high of 80% in May.

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The utilization ratio is the ratio of borrowed funds to placed. Because borrowers must post collateral of digital assets before taking out a loan on Aave, users are likely to withdraw in droves in light of today’s selloff to prevent liquidations. Data from DeFi Llama shows that Aave’s total locked value has fallen from $33.51 billion last October to $8.11 billion.

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According to the CryptoRank platform, TVL as a whole on DeFi protocols fell up 55% since the end of April, due in part to capital outflows and declining digital asset values. There are currently $115.7 billion of funds remaining, of which $72 billion is on the Ethereum (ETH) blockchain. This is a small fraction of the $303.9 billion peak TVL seen in November 2021.

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Over the weekend, cryptocurrency exchange Crypto.com announced that dismissal 260, or 5% of the corporate workforce, citing difficult market conditions. Just last month, the company also said it was significantly cutting fees on its popular cryptocurrency debit card. Annual APY cashback on spending reportedly was reduced from 2% to 8% to just 0% to 2% for cardholders with unsecured assets.

Monday morning at emotional message BlockFi, published by the founders, also announced that it is laying off 20% of its staff of 850 people. The firm cites the need to achieve long-term profitability goals when making a decision. Similarly, cryptocurrency exchange Coinbase has decided to extend its moratorium on hiring. canceled offers employment to hundreds of new employees. Although Brian Armstrong, its CEO, said “funds are safe” amid concerns about bankruptcy protection linked to the exchange. Other major crypto firms are reportedly laying off 10% of their workforce amid the ongoing bear market.