The total value locked (TVL) in the decentralized finance (DeFi) sector has decreased by more than 30% since December, reaching $94.06 billion. This is the lowest level since the sharp market surge in November 2025, according to the DefiLlama platform.
This is reported by Finway
The reasons for the decline in TVL are directly related to macroeconomic instability and the sector’s lack of maturity. Experts point to the impact of the market correction, which may have led to decreased investor interest. According to data, in March 2025, TVL reached a local minimum of $88 billion.
Impact on the Cryptocurrency Market
The decline in TVL occurs against the backdrop of weakening positions in the cryptocurrency market, which followed the election of Donald Trump. The subsequent introduction of trade tariffs and delays in the Federal Reserve’s interest rate cuts negatively affected investor sentiment. The price of Bitcoin fell from $108,000 to $83,000, while Ethereum dropped from $4,000 to $1,800, according to TradingView data.
Experts such as Vincent Liu from Kronos Research believe that uncertainty in the macroeconomy has pushed investors towards caution due to price volatility and competition from other blockchains. Kevin Guo from HashKey noted that effective development of DeFi requires integration with traditional financial institutions, competitive rates, and reliable protection.
Prospects for Sector Recovery
Analysts believe that the recovery of DeFi may depend on potential changes in U.S. tariff policy and inflation data. In the long term, as Nick Rak from LVRG pointed out, the sector remains attractive to institutional investors, especially in the context of growing interest in the tokenization of real-world assets (RWA).
“DeFi still needs integration with traditional financial institutions, competitive rates, and reliable protection,” noted Kevin Guo.