<p><strong>Aave and Lido's combined total value locked (TVL) fell $1.74 billion between Oct. 27 and Nov. 3, according to DeFiLlama data. The decline spans two of the largest DeFi protocols by locked assets, but a drop in dollar-denominated TVL does not automatically mean users pulled funds.</strong></p>
<h2 id="aave-and-lido-s-locked-value-declined-1-74b-in-a-week">Aave and Lido's Locked Value Declined $1.74B in a Week</h2>
<p><a href="https://defillama.com/protocol/aave" rel="noopener noreferrer nofollow">DeFiLlama</a> tracks TVL by valuing the assets deposited in a protocol at current market prices and expressing the total in U.S. dollars. The combined reading for Aave and Lido fell by <a href="https://cryptoslate.com/aave-and-lido-lose-1-7b-in-massive-defi-capital-drop-after-the-binance-hack/" rel="noopener noreferrer nofollow">approximately $1.74 billion</a> over the Oct. 27 to Nov. 3 window. The figure covers both protocols in aggregate; the split between them is not confirmed by the available evidence.</p>
<p>Aave is a decentralized lending and borrowing protocol where users deposit collateral to borrow other assets. Lido is a liquid staking service, primarily for Ether, that lets depositors earn staking rewards while keeping their assets liquid through its stETH token. Both protocols hold large quantities of ETH and ETH-denominated assets, making their dollar TVL sensitive to swings in Ether's price. For related coverage, see <a href="https://coinwy.co/why-is-uniswap-price-surging-today/" rel="noopener noreferrer nofollow">Why Is Uniswap (UNI) Price Surging Today? Key Drivers Explained</a>.</p>
<p>Lido's position in the liquid staking landscape has drawn renewed attention, with its <a href="https://coinwy.co/liquid-staking-vs-eth-staking-etfs-lido-dats/" rel="noopener noreferrer nofollow">distributed validator technology</a> discussed as a path toward further decentralization. Aave has expanded its reach through integrations such as <a href="https://coinwy.co/circle-mint-bitcoin-backed-loans-aave/" rel="noopener noreferrer nofollow">Bitcoin-backed lending with Circle</a>.</p>
<h2 id="why-a-tvl-decline-does-not-automatically-mean-withdrawals">Why a TVL Decline Does Not Automatically Mean Withdrawals</h2>
<p>TVL is a dollar-denominated figure. When the price of ETH or any other asset held inside a protocol drops, the reported TVL falls even if the number of tokens on deposit is unchanged. No withdrawal needs to occur for the metric to shrink. Context on this theme: <a href="https://coinwy.co/world-data-centre-summit-philippines-2026/" rel="noopener noreferrer nofollow">World Data Centre Summit – Philippines 2026</a>.</p>
<p>This distinction matters because a TVL drop is often reported as evidence of users exiting a protocol. That interpretation is only valid when confirmed by net withdrawal data, meaning more tokens left the contracts than entered during the same period. Price-driven moves and genuine outflows can look identical on a headline TVL chart.</p>
<p>Aave has faced separate scrutiny on the security side: a <a href="https://coinwy.co/slowmist-aave-v3-loop-safe-module-exploit-114-09-eth/" rel="noopener noreferrer nofollow">SlowMist alert flagged an exploit of the Aave v3 Loop Safe module</a> for 114.09 ETH, an event unrelated to this TVL reading but illustrative of the protocol risks that can influence depositor behavior alongside price movements.</p>
<h2 id="what-to-watch-in-the-next-defillama-tvl-readings">What to Watch in the Next DeFiLlama TVL Readings</h2>
<p>To judge whether the Oct. 27 to Nov. 3 decline represents actual capital flight, readers should compare the dollar TVL change against Ether's price move over the same period. If ETH fell by a similar percentage, the TVL drop is largely a valuation effect. If TVL fell faster than ETH, net outflows are a more likely explanation.</p>
<p>DeFiLlama also publishes token-denominated TVL for many protocols, which strips out price effects and shows raw deposit changes. Checking that figure alongside the dollar reading gives a clearer picture of whether users added or removed capital during the week. The same methodology applies to other large DeFi protocols whose TVL moves frequently conflate price action with deposit flows.</p>
<div style="background:#0d1117;border-left:3px solid #26c6da;padding:16px 20px;margin:20px 0;border-radius:4px;">
 <p style="margin:0 0 8px;color:#26c6da;font-weight:600;font-size:14px;">KEY TAKEAWAYS</p>
 <ul style="margin:0;color:#e6edf3;">
  <li><strong>$1.74 billion:</strong> Combined TVL decline reported for Aave and Lido, Oct. 27 to Nov. 3</li>
  <li><strong>Measurement window:</strong> Oct. 27 to Nov. 3, as tracked by DeFiLlama</li>
  <li><strong>Caveat:</strong> Dollar TVL can fall due to asset price declines alone; net withdrawals require separate confirmation from token-denominated deposit data</li>
 </ul>
</div>
<p>The seven-day period ending Nov. 3 is now a fixed reference point. Future DeFiLlama readings that show a recovery will need to be weighed against whether asset prices also recovered, or whether fresh deposits drove the rebound.</p>
<p style="font-size:13px;color:#888;border-top:1px solid #333;padding-top:12px;margin-top:30px;">Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.</p><a href="https://coinwy.co/?p=26275" rel="noopener noreferrer nofollow">Read original article on coinwy.com</a>
<div class="coinwy-read-also"><strong>Read also :</strong>
 <ul>
  <li><a href="https://coinwy.co/world-data-centre-summit-vietnam-2026/" rel="noopener noreferrer nofollow">World Data Centre Summit – Vietnam 2026</a></li>
  <li><a href="https://coinwy.co/raydium-review-2026/" rel="noopener noreferrer nofollow">Raydium Review 2026: Hands-On Look at Swap, Liquidity Pools, LaunchLab and the RAY Token</a></li>
  <li><a href="https://coinwy.co/sky-review-2026/" rel="noopener noreferrer nofollow">Sky Protocol (ex-MakerDAO) Review 2026: Sky.money, sUSDS, stUSDS and SKY Staking Walkthrough</a></li>
  <li><a href="https://coinwy.co/digital-chamber-sherrod-brown-win-crypto-setback/" rel="noopener noreferrer nofollow">Digital Chamber Calls Sherrod Brown Win a Crypto Setback</a></li>
  <li><a href="https://coinwy.co/best-crypto-portfolio-tracker-for-year-end-tax-reporting-2026/" rel="noopener noreferrer nofollow">Best Crypto Portfolio Tracker for Year-End Tax Reporting 2026</a></li>
 </ul>
</div>

Aave and Lido TVL Falls $1.74B in One Week

Table of Contents

Coinwy

Other articles published on Nov 4, 2026

Join our free newsletter for daily crypto updates!