According to DeFiLlama data analyzed by LlamaAI, DeFi protocols show varying success rates, with a failure defined as a protocol's TVL falling below $100,000 within six months of launch and not recovering. The analysis reveals that algorithmic stablecoins have the highest failure rate at 70.25%, followed by gaming at 67.90%, reserve currencies at 64.66%, and gambling/luck-based categories at 60.00%. Other high-failure categories include farming/yield farming at 59.11%, SoFi at 58.11%, services at 47.11%, launchpads at 43.92%, prediction markets at 42.47%, and payments at 40.00%.
In contrast, decentralized exchanges (DEX) have a lower failure rate of 25.85%, governance incentives at 28.57%, and yield-related categories at 32.11%. These statistics highlight significant survival rate differences across various DeFi sectors.
DeFi Protocols Face High Failure Rates, Algorithmic Stablecoins Lead
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