DeFi Market Experiences Stabilization but Underlying Rotation Suggests Caution

The DeFi market has experienced a stabilization in total value locked (TVL) at $94.0 billion, despite some fluctuations.

Ethereum continues to dominate the market, accounting for 57.25% of TVL with $53.914 billion, while Bitcoin-based DeFi saw a significant increase of 55.54% in TVL over the past week.

However, the sector's growth is hindered by declining activity in core categories such as lending and liquid staking, which are experiencing outflows and potentially reflecting profit-taking or reduced leverage.