DeFi TVL drops 39% YTD to $70B amid market slump and hacks

The total value locked in decentralized finance protocols has fallen for six consecutive months, declining by approximately 39% since the start of the year to roughly $70 billion as of late June. The sustained downturn follows a broader market correction that began after Bitcoin reached a record high above $122,000 in October 2025.

Data from analytics firm CryptoRank shows the total value locked (TVL) across DeFi has dropped from around $115 billion in January. The contraction is linked to a wider deleveraging cycle across digital assets, which intensified after a major market-wide liquidation event on October 10, 2025, erased billions in leveraged positions. Since that peak, the total cryptocurrency market capitalization has fallen from roughly $4.21 trillion to nearly $2.15 trillion.

The decline has been broad-based across major blockchain ecosystems. Ethereum, the largest DeFi chain, has seen a 43% year-to-date decline to $38.9 billion in TVL. Solana's TVL fell 40.5% to $4.93 billion. Arbitrum recorded one of the steepest contractions among major chains, dropping 55.3% to $1.3 billion.

Only two networks among the top ten by TVL posted positive growth. Tron's TVL increased by...