Ethereum

Solana

DeFi

April

Avalanche

<p><strong>The sky has darkened for the DeFi ecosystem in April. According to data from DefiLlama, the Total Value Locked (TVL) has retreated by 10 billion dollars, marking a 7% decline in just one month. A hard blow for the crypto sector, which closed April with 138.6 billion dollars in locked liquidity. Behind these troubling global figures, certain blockchains have suffered particularly heavily.</strong></p>
<h2 id="h-avalanche-and-solana-bleed-dry-in-the-crypto-ecosystem">Avalanche and Solana bleed dry in the crypto ecosystem</h2>
<p>In detail, few DeFi projects managed to hold their own in April. Indeed, among the ten most significant blockchains by <a href="https://www.cointribune.com/en/tvl-crypto-real-world-assets-rwa-explode-to-8-billion/" target="_blank" rel="noopener noreferrer nofollow">TVL</a>, Avalanche and Solana have experienced a real ordeal.</p>
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<p>For Avalanche, the tumble was severe, with a massive exodus of 31.5% of the funds committed on its blockchain! A shock for this otherwise promising crypto ecosystem, which now struggles to rebound.</p>
<p>Solana is hardly better off, with a hemorrhage of nearly 30% of its DeFi liquidity last month. A concerning underperformance that raises questions about the resilience capacities of this highly publicized crypto project.</p>
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<h2 id="h-ethereum-holds-its-ground-bitcoin-and-certain-l2-s-progress">Ethereum holds its ground, Bitcoin and certain L2’s progress</h2>
<p>While the general trend of crypto was quite bleak in April, <a href="https://defillama.com/?liquidstaking=true" target="_blank" rel="noopener noreferrer nofollow">some pockets of resistance</a> have nevertheless emerged. Leading the pack, Ethereum has managed to maintain its status as the dominant DeFi blockchain despite a 14.2% decline in its TVL. As proof of its strength, the leading network still captures nearly 69% of the sector’s liquidity.</p>
<p>Another ray of hope is that Bitcoin and several Ethereum Layer 2 (L2) projects have gained attractiveness among crypto investors. Driven by renewed ambitions for Bitcoin, the queen of crypto saw its TVL leap by 39% to surpass the one billion dollar mark.</p>
<p>At the same time, L2 blockchains such as BASE (+18.4%), BLAST (+4.4%), or Arbitrum have confirmed their upward trend. Crypto ecosystems that are increasingly favored by developers wishing to benefit from low-cost and high-performance environments.</p>
<p>Ultimately, this setback in TVL in April may act as a much-needed jolt for the entire <a href="https://www.cointribune.com/en/heres-how-ethereum-boosts-defi-100-billion-locked-dollars/" target="_blank" rel="noopener noreferrer nofollow">decentralized finance</a> industry. A significant challenge, certainly, but also an opportunity to tidy up, clean the crypto market, and start anew on even firmer foundations.</p>
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Crypto: DeFi TVL loses $10 billion in April! What’s going on?

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