DeFi Sentiment Rattled as Steep TVL Decline Hits Every Major Blockchain
Total Value Locked (TVL) across major DeFi blockchains sharply declined, driven by shifting market conditions and major security exploits.Summary
The decentralized finance (DeFi) industry experienced a significant downturn, with Total Value Locked (TVL) across major networks like Ethereum, Solana, Arbitrum, BNB Smart Chain, and Base all recording double-digit percentage declines. Ethereum, despite leading the pullback with a roughly 13% drop to $74.2 billion, still commands over 62% of the sector. Solana and Arbitrum saw even steeper losses of about 14% each. Overall DeFi TVL fell from nearly $150 billion to $130 billion, indicating reduced activity in borrowing, lending, and staking.
This decline was amplified by major security incidents, notably a $120 million exploit on Balancer due to a rounding error in its batchSwap feature. Additionally, Stream Finance reported the loss of approximately $93 million managed by an external fund, forcing the protocol to halt operations and leading to the shutdown of Elixir's deUSD stablecoin. These back-to-back failures highlighted persistent structural vulnerabilities in DeFi, including design flaws and smart-contract logic issues, intensifying scrutiny on the sector.
(Source：BeInCrypto)