DeFi TVL drops 39% in 2026 amid market downturn and record hack activity
DeFi TVL fell 39% in 2026 as a broader market downturn and fallout from major exploits, including the Kelp DAO hack, weighed on the sector.
Total value locked (TVL) in decentralized finance (DeFi) has fallen by about 39% in 2026 so far, declining to just over $70 billion from roughly $115 billion in January.
A Wednesday report from crypto data aggregator CryptoRank attributed the decline to the broader market correction that followed the October 2025 crypto market peak.
After Bitcoin reached a record high above $122,000, a market-wide liquidation event on Oct. 10, 2025, erased more than $19 billion in leveraged positions and accelerated a deleveraging cycle across digital assets.