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According to Nansen gas tracker, Ethereum's gas cost spiked to 1000 Gwei as the network faces a massive increase in usage after lending and borrowing platforms report up to a 300% increase in consumption.
Among the biggest gas users on Ethereum chains are platforms like 1inch, Uniswap and Tether token contracts. The spike in consumption reflects the current sentiment on the market as traders are actively moving their funds away from crypto and looking for a way to exit into fiat.
Lending and borrowing platforms are also under a heavy "attack" as investors are rapidly losing trust in any of the top stablecoins or DeFi solutions and are moving money away from various liquidity contracts.
Following the drop in UST, the market saw massive outflows of funds from the whole DeFi industry. According to DefiLIama, the industry of decentralized solutions saw a crucial drop in TVL by losing 24% of the total value of funds locked in the contracts in the last 24 hours.
In the matter of a week, the total TVL across various chains tumbled from $204 billion to $115 billion. Such a drastic drop brings the DeFi industry back to July levels when Bitcoin and other cryptocurrencies bottomed out right before the start of a new rally.
DeFi-related tokens like AAVE, ADA and ATOM are also tanking as they lose over 60% of their value in a matter of days. But DeFi is not the only industry that reported a massive drop in netflow, as cryptocurrencies like Bitcoin are also at double-digit losses over the last few days.