The collapse of UST and the Terra ecosystem, which could be interpreted as a black swan event, and the subsequent contagion that led to the bankruptcy of Three Arrows Capital and the insolvency of multiple centralized yield providers like Celsius, has undoubtedly sent the industry into a bear market.

Key Takeaways:

• The second quarter of 2022 was catastrophic for the digital asset space. Bitcoin and Ethereum fell 56.3% and 67.4% respectively, recording one of the worst quarterly performances in their history.
• Q2 was marred by high-profile contagion events within the digital assets ecosystem. Consequently, the fall in the price of crypto assets has translated into a decline in Total Value Locked (TVL) in DeFi protocols – falling 65.7% to $93.2bn in Q2 2022