DeFi Market Shows Resilience Despite Token Price Declines

Ethereum (ETH) has dropped to around $3,024, a 38% decline, while major DeFi governance tokens like AAVE and Lido’s LDO have fallen roughly 40% and 50%. Although these numbers may seem alarming, the discrepancy between token performance and overall DeFi health tells a different story. Much of the decrease in total value locked (TVL) across DeFi is the direct result of asset price depreciation rather than a significant outflow of capital. When token prices fall, the dollar value of locked assets naturally declines—even if users keep their funds in the protocols. This nuance is often overlooked in surface-level TVL analysis.

A broader view of the DeFi market supports the idea of a cooldown rather than a collapse. Multi-year data from DeFiLlama shows a steady uptrend since late 2023, characterized by higher highs and higher lows. The sector has reached peaks of $107 billion, $142 billion, and $178 billion, followed by troughs at $80 billion, $89 billion, and now $123 billion. Despite recent volatility, these levels remain far above previous cycle lows, reinforcing confidence in the sector’s long-term strength.

Activity across decentralized finance also remains robust. Digital asset treasury inflows have slowed from October highs, but decentralized exchanges (DEXs) have experienced a surge in usage. From November 1 to November 26, 2025, DEX trading volume reached $360 billion—already surpassing the full month of June, which saw $332 billion in activity. Major lending platforms are also holding strong. Aave, the largest DeFi lending protocol, continues to maintain a TVL of $32 billion, nearly double its value from a year ago despite the recent market pullback.

Although a headline TVL figure near $55 billion might suggest distress, the reality is far more stable. DeFi’s growth in this cycle has been gradual, consistent, and far healthier compared with the explosive rise and fall of 2021, when TVL surged from $13 billion to $210 billion before plunging below $60 billion. The sector’s measured progress signals a maturing market—one that appears increasingly resilient even during broader downturns.