- Solana-based DeFi application Clockwork will be winding down its nodes on the mainnet by October 31.
- Clockwork developers cited the same reason as NFT protocol Cardinal for shutting down - lack of commercial upside.
- The DeFi market’s suffering may continue as the total value locked declined by $4 billion this month.
The Decentralised Finance (DeFi) market has been observing waning interest for the past couple of months. The broader market’s depreciating conditions are leaving a bearish impact on the protocols as well, leading to the shuttering of some major Decentralized applications (Dapp). Solana this week marked the shutdown of its second Dapp in just two months.
Solana DeFi protocol loses to bears
Solana-based DeFi application, Clockwork, is the second protocol to fall victim to the broader market bearish cues on the network. The founder of the protocol, Nick Garfield, announced on the social media platform X that the team behind Clockwork will be stepping away from active development of the Dapp.
Nick went on to add that the developers may continue to use the software as written, but their nodes on development network and mainnet will be shut down by October 31. The users were notified that the on-chain programs would be frozen, and the code would remain open-source and free to fork on GitHub.
However, the founder encouraged the development of the protocol, stating that anyone who wished to fork the code and ship has the team’s full endorsement. The reason behind the winding down of the protocol was the lack of commercial upside in the consistent development of the protocol.
Clockwork was initially conceived out of a need for an on-chain automation primitive.
— Nick (@time_composer) August 27, 2023
To that end, the team and I feel successful in completing our original mission and proud of the adoption it has seen.
4/
Back towards the end of June, another Solana Dapp, an NFT protocol Cardinal, was shut down for the same reason. The challenging macroeconomic conditions have been weighing heavily on the developers, resulting in losses. To make things worse, investors have been pulling their money out of the DeFi market to offset or prevent any significant losses arising out of the concerning conditions of the market.
This is visible in the fact that the total value locked (TVL) on the DeFi market has been consistently declining for about four months now. The month of August alone noted a decline of $4 billion in the TVL, bringing it down to $ 62.91 billion.
DeFi market TVL
With the TVL at its lowest in more than seven months, the DeFi market does not seem very lucrative when it comes to investment. This might result in further outflows, leaving protocols vulnerable to an outcome similar to Clockwork and Cardinal.
Read more - Solana price rallies by over 10% despite NFT protocol Cardinal announcing shutdown
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.