The Total TVL from Defi has collapsed below $ 90 billion, which marked a -35% of the $ 140 billion in December.
The collapse of the Ethereum price weighs heavily.
Analysis of the Defi TVL
The so -called TVL (Total value locked) of Defi is the dollar equivalent of all assets that are locked in various Defi protocols.
It concerns thousands of protocols on dozens or hundreds of different chains.
The bulk is focused on Ethereum (51%), while all other chains combined do not reach half of the total value.
In the second position Solana (7.5%), experienced considerable growth in recent months, and even in third position Bitcoin (6%) thanks to the lightning network.
Only BSC more than 5%, in addition to the mentioned, while Tron Stops at 4% mainly thanks to USDT. Berachain is a strong increase of 3.6%.
The all time of TVL Defi was reached in 2021, with nearly 180 billion dollars.
During the large bear market of 2022/2023 it collapsed to 36 billion, and the fear is that a somewhat similar collapse could occur in 2025.
The next peak was reached $ 138 billion on December 17, 2024, while yesterday dropped under 88 billion.
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Ethereum’s problem
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Since the Ethereum Chain still dominates the Defi TVL undisputed, the collapse of the ETH price plays a key role, although other assets are also present in the Ethereum TVL in this chain, such as USDT, USDC and Dai.
The maximum peak reached by the ETH price at the end of 2024 was $ 4,100, touched on December 16, which was not coincidental the day before the peak of the TVL.
Since then, however, there have been four strong falls, so much that it also fell below $ 1,900 yesterday, with an accumulated loss in the last three months of 53% of the recent highlights.
It is very likely that behind the 35% decrease in the Defi TVL is precisely this -53% ETH, also because there are many assets that are locked in Defi, Stablecoins that do not lose value over time.
The collapse of the Ethereum (ETH) price
Until a few weeks ago, a short -term return of the ETH price under $ 2,000 was not considered realistic.
Already on December 20, only four days after the last peak, it had fallen to $ 3,000, which suggests that the hypothesis that it could have fallen even further.
The second crash took place at the beginning of February, when it was lower than $ 2,500, and the third at the end of February, when it fell below $ 2,000 for a short moment.
The real big problem is that this collapse does not seem to be over yet, so much so that it fell below $ 1,800 for a very short moment yesterday.
Now it is reflected back to $ 1,900, but at this stage there are no signs of a possible significant increase, at least for the time being.
As a result, the Defi suffers, also because in addition to a -28% of it ETH In the past thirty days there has also been a -40% of Sol (Solana).
The end of the Trump trade
All this is essentially due to the end of the so -called Trump TrandeOr the disintegration of the mini bubble that blown up after the election victory of Donald Trump.
However, to tell the truth, if the current price of Bitcoin is still higher than the $ 70,000 from which the mini bubble began to blow up, the situation is different for Ethereum, because it was much higher than $ 2,000 at the end of October.
This discussion also applies to Solana, because before the Trump trade it was more than $ 150, while it has now plunged to slightly more than $ 120.
All this indicates that if Bitcoin still retains, the disadvantage of the Mini-Bubble-Burst, the situation is still difficult for Altcoins, so much so that further losses cannot be excluded.
