2026-01-07 01:51:32

In 2025, the DeFi (Decentralized Finance) market experienced a thrilling roller coaster ride. At the beginning of the year, driven by explosive performance in Layer 2 and the influx of institutional funds, TVL (Total Value Locked) skyrocketed from $182.3 billion to a historic peak of $277.6 billion, making a trillion-dollar ecosystem seem within reach.

However, in the fourth quarter, a sudden 10/11 flash crash like a bucket of ice water poured over the market caused TVL to sharply shrink to $189.3 billion, erasing the year's gains to a negligible 3.86%. This intense volatility revealed the true texture behind the glamorous narrative of DeFi: on one side, deep evolution in sectors like staking, lending, and RWA; on the other, the fragility built by leverage and the hidden pain of governance fragmentation.

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CalmLakeSurface

· 01-07 01:51

In 2025, the DeFi (Decentralized Finance) market experienced a thrilling roller coaster ride. At the beginning of the year, driven by explosive performance in Layer 2 and the influx of institutional funds, TVL (Total Value Locked) skyrocketed from $182.3 billion to a historic peak of $277.6 billion, making a trillion-dollar ecosystem seem within reach. However, in the fourth quarter, a sudden 10/11 flash crash like a bucket of ice water poured over the market caused TVL to sharply shrink to $189.3 billion, erasing the year's gains to a negligible 3.86%. This intense volatility revealed the true texture behind the glamorous narrative of DeFi: on one side, deep evolution in sectors like staking, lending, and RWA; on the other, the fragility built by leverage and the hidden pain of governance fragmentation.

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