2026

DeFi

Rare

Hyperliquid

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<a href="https://yellow.com/research/defi-tvl-crosses-130b-revenue-split-different-story" rel="noopener noreferrer nofollow">Decentralized finance</a> has lost roughly 39% of its total value locked in 2026, with deposits sliding from about $115 billion in January to near $70 billion.
<h2 id="key-points">Key Points:</h2>
<blockquote>
 <ul>
 <li>DeFi total value locked has fallen about 39% in 2026, dropping from $115 billion to near $70 billion.</li>
 <li>Only Tron and Hyperliquid grew among the top chains, while Ethereum kept the largest share.</li>
 <li>The sector logged 121 hacks and nearly $942 million in losses through late June.</li>
 </ul>
</blockquote>
<h2 id="defi-tvl-slides-toward-70-billion">DeFi TVL Slides Toward $70 Billion</h2>
Total value locked across DeFi protocols has fallen in every single month of this year, according to figures <a href="https://cryptorank.io/insights/analytics/defi-tvl-downtrend-2026" rel="noopener noreferrer nofollow">compiled</a> by research platform CryptoRank. The drain has been relentless and broad.
Deposits have dropped from near $115 billion in January to about $70 billion by late June, a 39% slide that has erased close to $45 billion and marked the longest losing streak since 2022.
The cause is not hard to trace. A market reset took hold after crypto peaked last October, when Bitcoin<a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">(BTC)</a> climbed above $122,000 before the total market value <a href="https://www.cryptotimes.io/2026/06/24/defis-45b-wipeout-hacks-and-market-crash-drive-tvl-lower/" rel="noopener noreferrer nofollow">slid</a> from $4.21 trillion to near $2.15 trillion, draining the collateral behind on-chain loans.
Ethereum<a href="https://yellow.com/asset/eth" rel="noopener noreferrer nofollow">(ETH)</a> still anchors the sector with $38.9 billion locked, even after a 43% slide that ranks among the steepest falls of any major chain this year as token prices sank. Solana and Arbitrum fell harder. Only Tron<a href="https://yellow.com/asset/trx" rel="noopener noreferrer nofollow">(TRX)</a> and Hyperliquid<a href="https://yellow.com/asset/hype" rel="noopener noreferrer nofollow">(HYPE)</a> bucked the trend, gaining about 5% and 7% apiece on stablecoin settlement flows and steady demand for on-chain perpetual futures even as the broader market cooled.
Also Read:<a href="https://yellow.com/news/has-the-market-missed-tron-trx-bullish-combination" rel="noopener noreferrer nofollow">Has The Market Missed Tron? TRX Flashes A Rare Bullish Combination</a>
<h2 id="crypto-hacks-erode-defi-trust">Crypto Hacks Erode DeFi Trust</h2>
Security has become the louder worry. The industry logged 121 hacks and nearly $942 million in losses through late June, with the second quarter alone bringing 85 incidents and roughly $775 million in stolen funds, the busiest quarter for exploits on record.
Two breaches in April did the heaviest damage.
Attackers <a href="https://crypto-economy.com/defi-tvl-falls-39-ytd-to-70b-as-exploits-and-market-slump-weigh-on-sector/" rel="noopener noreferrer nofollow">drained</a> roughly $293 million from KelpDAO, then borrowed against stolen rsETH on Aave, leaving the lender saddled with bad debt from tokens it could not easily recover.
Aave deposits fell from $26.4 billion to $14.3 billion within days as depositors rushed for the door.
The pattern points to broken trust. Analysts read the steady outflow as a confidence problem rather than a liquidity drought, even though stablecoin supply has held near $300 billion through the slump as capital waits in safer assets for clearer conditions to return.
The damage still looks mild against the last cycle.
DeFi peaked near $177 billion in late 2021, then collapsed more than 70% to about $51 billion by July 2022 as leverage unwound across the wider digital asset market. This year's slower grind points to a sector that has spread its risk across stablecoins, real-world assets, and a wider set of derivatives venues than the last cycle offered.
Read Next:<a href="https://yellow.com/news/nexo-title-partner-grand-prix-ball" rel="noopener noreferrer nofollow">Nexo Becomes Title Partner Of 2026 British Grand Prix Charity Ball</a>

DeFi’s 2026 Selloff Deepens As Trust Breaks Faster Than TVL Recovers

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