Total value locked (TVL) in decentralised finance, or DeFi, has fallen about 39 percent so far this year to a little over $70 billion.
Cointelegraph reported on June 24 that DeFi deposits, which were about $115 billion at the start of the year, shrank sharply due to a market-wide correction and the impact of a string of hacks.
CryptoRank cited the pullback that followed a peak in the cryptocurrency market in October 2025 as a key driver of the decline. After Bitcoin rose above $122,000, large-scale liquidations occurred across the market on Oct. 10 that year. More than $19 billion in leveraged positions disappeared, accelerating deleveraging across digital assets.
Still, the scale of the current correction is smaller than during the 2021 to 2022 bear market. CryptoRank viewed this as a sign that the DeFi market has become more resilient than in the past.
Security incidents also weighed on the sector. There have been 121 hacks in DeFi so far this year, with losses estimated at about $942 million. Hacking was not the main cause of the TVL decline, but frequent incidents weakened user trust and increased outflows, the analysis said.
Chi-gyu Hwang
delight@d-today.co.kr