DeFi Sector Contracts 37% in 2026 Amidst Market Correction

The DeFi sector saw significant decline in total value locked (TVL), contracting by approximately 37% in 2026. The TVL fell from roughly $112.6 billion in January to just over $70 billion in June, a level not seen since 2024.

This downturn followed an October 2025 peak when Bitcoin reached a record high above $122,000 and a subsequent liquidation event on October 10 wiped approximately $17 billion in leveraged positions. Intensified hacking activity also contributed to the decline, with 121 incidents resulting in approximately $942 million in losses YTD.

A consortium of over 140 payment, banking, and crypto firms launched the Open Standard and its dollar-pegged stablecoin, Open USD (OUSD). OUSD plans to completely eliminate minting and redemption fees while redistributing reserve interest yield back to the member businesses driving its circulation.