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The decentralized finance ecosystem has recorded a high amount of losses as the crypto market falls below the $2 trillion mark. 
According to data provided by Defi Llama, the total <a href="https://crypto.news/understanding-defi-and-its-uses/" target="_blank" rel="noreferrer noopener">defi</a> total value locked (TVL) plunged by 19% over the past 24 hours — falling from $88.8 billion to $71.8. This is the first time since Feb. 24 that the defi TVL has fallen to the $71 billion mark. 
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 Defi TVL – Aug. 5 | Source: <a href="https://defillama.com/" target="_blank" rel="">Defi Llama</a>
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The leading defi protocol, Lido Finance, saw a 19.2% decrease in its TVL over the past day, falling to $23 billion. The native token of the top liquid staking protocol, Lido DAO (<a href="https://crypto.news/price/lido-dao/" target="_blank" rel="noreferrer noopener">LIDO</a>), plunged by 26% in the past 24 hours and trading at $0.98 at the time of writing.&nbsp; 
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EigenLayer, AAVE and Maker also recorded 18.5%, 16.7% and 10.8% declines in their TVLs, respectively.&nbsp; Following the drop, AAVE’s TVL dropped below the $10 billion mark for the first time since May 2. 
Moreover, JustLend, ether.fi and Uniswap witnessed 15.7%, 19.6% and 17.4% declines in their respective TVLs.&nbsp; 
At this point, data from Defi Llama shows that the leading 34 protocols have seen notable declines in their TVLs in the past 24 hours.&nbsp; 
The fall in the total defi TVL comes as the cryptocurrency market faces turbulence triggered by <a href="https://crypto.news/bitcoin-spirals-below-55k-for-first-time-july-13/" target="_blank" rel="noreferrer noopener">geopolitical concerns</a>. Notably, the global crypto market capitalization <a href="https://crypto.news/crypto-liquidations-surpass-1b-amid-market-wide-turbulence/" target="_blank" rel="noreferrer noopener">plunged</a> by 13.4% over the past day, falling below the $2 trillion mark. 
In addition, the market-wide decline brought over $1 billion in liquidations in the past 24 hours. The leading cryptocurrency, Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>), also fell below the $50,000 mark for a few minutes earlier today.&nbsp; 
On Aug. 2, spot Bitcoin and Ethereum (ETH) ETFs in the U.S. <a href="https://crypto.news/bitcoin-ethereum-etfs-record-joint-outflows-first-time/" target="_blank" rel="noreferrer noopener">recorded</a> notable outflows. BTC ETFs saw $237.4 million and ETH ETFs witnessed $54.3 million in outflows as the investor sentiment shifted amid market-wide FUD (fear, uncertainty and doubt). 
 Read more: <a href="https://crypto.news/nft-market-surge-buyers-sales-decline-12-6-percent/"> NFT market review: Buyers surge, sales decline over 12.6% </a>

Defi protocols record double-digit losses, total TVL tanks 19%

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