DeFi Market Activity Slows Amid Concerns Over Sector's Strength

The decentralized finance (DeFi) market has been experiencing a significant slowdown in activity, with DEX volume falling to $6.047 billion by May 28, down from $22 billion in late January.

This drop has sparked concerns about the strength of DeFi, with some traders questioning whether 'DeFi could be dying.' However, experts note that this is a cooldown rather than a confirmed collapse.

DEX volume has been under pressure since the sharp market crash in October 2025. At the height of market activity, decentralized exchange volume reached about $159 billion. Since then, activity has continued to fall week by week.

Weekly DEX volume is now closer to $40 billion, about 76% below the earlier peak. This decline shows that traders are less active across DeFi markets, especially in smaller and more speculative tokens.

Major decentralized exchanges, such as Uniswap and PancakeSwap, continue to lead the sector despite the slowdown. Their volumes have remained steady, with Uniswap recording $1.428 billion in volume while PancakeSwap reached $805.97 million at press time.