The total value locked (TVL) in the decentralized finance (DeFi) sector has decreased by more than 30% since December 2024, reaching $94.06 billion. This decline, according to data from DefiLlama, is comparable to levels observed before the sharp market rise in November 2025. In March of this year, TVL recorded a local minimum of $88 billion.
This is reported by Business • Media
The decrease in TVL occurred against the backdrop of weakening positions in the cryptocurrency market due to trading tariffs and a prolonged pause in interest rate cuts by the Federal Reserve, which negatively impacted investor sentiment. For example, Bitcoin fell from $108,000 to $83,000, while Ethereum dropped from $4,000 to $1,800, according to TradingView.
Reasons for the Decrease in DeFi Activity
Experts point out that uncertainty in the macroeconomy has led to a decline in activity within the Ethereum and Bitcoin ecosystems. Vincent Liu from Kronos Research emphasized that users are becoming more cautious due to high price volatility and competition from other blockchains. Global economic issues also remain an important aspect.
Prospects for DeFi Recovery
Kevin Guo from HashKey noted that decentralized finance still requires integration with traditional financial institutions, competitive rates, and reliable protection. Complex interfaces and high fees can deter retail investors, while professional traders continue to utilize liquidity from centralized exchanges.
Analysts argue that the recovery of the DeFi sector 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 amid growing interest in the tokenization of real-world assets (RWA).
“In February 2025, CEO of the dYdX Foundation, Charles d’Ossy, predicted explosive growth in the DeFi sector.”