DeFi TVL holds up despite crypto sell-off as yield seekers stay put

Despite major cryptocurrencies like BTC, ETH, and SOL hitting multi-year lows, DeFi's Total Value Locked (TVL) only dropped 12%, from $120 billion to $105 billion, significantly outperforming the broader market. This resilience is attributed more to dwindling asset prices than users fleeing, as the amount of Ether deployed across DeFi protocols actually increased since the start of the year. Furthermore, on-chain liquidations are muted compared to previous downturns; for instance, during a similar drop last year, $340 million in liquidations were near triggering, whereas now, only $53 million in positions are within 20% of current prices. This stability, coupled with steady yields and quiet inflows, suggests the DeFi sector has matured, contrasting sharply with past cycles where DeFi was the first to implode during market stress.

(Source：CoinDesk)