DeFi TVL Drops 39%, Only Tron and Hyperliquid Resist the Trend

The decentralized finance (DeFi) sector has seen its total value locked (TVL) plummet by approximately 39% year-to-date, according to a report from CryptoRank. This decline marks six consecutive months of contraction in DeFi TVL and reflects a broader correction following the market's peak earlier this year.

The downturn is attributed to a combination of factors, including reduced yield opportunities, shifting investor sentiment toward lower-risk assets, and a cooling macroeconomic environment. Additionally, the sector has experienced 121 security incidents in 2025, resulting in cumulative losses of approximately $942 million.

However, not all blockchain networks are faring poorly. Tron's TVL has increased by roughly 5% year-to-date, driven by sustained demand for USDT transfers and stablecoin-based payments. Hyperliquid, a newcomer focused on on-chain perpetual futures trading, has seen its TVL rise by approximately 6.7% since January.

The divergence in TVL performance highlights a shift in user priorities, with platforms offering specific utility continuing to attract liquidity. This trend suggests that the market is rewarding protocols with clear use cases and sustainable revenue models rather than those relying on speculative yield farming incentives.