DeFi TVL Suffers 30% Market Value Loss from December Peak as Crypto Projects Struggle

DeFi’s TVL has decreased by more than 30% from its ATH of $137 billion noted in December 2024 to the current low of $94.65. That is according to the latest data shared today by crypto analyst Satoshi Club. The drop in TVL in DeFi is a reflection of the current market turbulence and global economic uncertainty.

Why DeFi TVL dropped to $94 billion

As per today’s metrics from Satoshi Club, DeFi’s TVL hovers at $94.65 billion, after seeing a constant decrease from the highest height of $137 billion recorded in December 17, 2024. Most recently, the DeFi TVL registered a deeper decline to $88 billion experienced last month.

The surge in DeFi TVL during the period around December was fuelled by the election of crypto friendly President Trump in Nov.5, 2024. The present DeFi’s TVL level of $94.65 is relatively the same as levels observed before Trump’s election, before seeing a quick rise to surpass $100 billion.

Since December, the DeFi sector has lost momentum. The decline highlights how market instability can substantially affect decentralized finance. Most cryptocurrencies have also witnessed reduced market participation from investors, highlighting a change in user enthusiasm amid price declines and ongoing global economic uncertainty.

The Trump-induced crypto bullish trend weakened during Q1, 2025, when the President announced plans to impose reciprocal tariffs on nations in which the US has huge trade deficits.

Besides the tariff concerns, investors’ worries about continuing US inflation and extended halt in Fed’s lending rate reductions triggered decreased user confidence in risky assets. Crypto market has been under pressure. Today, BTC’s value is trading at a low of $83,201, down from its recent high of $109,026 in January 20, 2025.

DeFi continues to display strength

Regardless of the ongoing short-term price fluctuations, the DeFi market displays optimistic long-term investment opportunity as regulators have become more receptive to blockchain integration into the traditional finance.

DeFi tech infrastructure is well placed to continue to offering long-term value to investors as the cryptocurrency world matures. Particularly, global regulators appears to play a crucial role in supporting DeFi’s potential. They welcome a growing trend in which institutions are adopting RWA tokens and blockchain technology into their key business activities.

However, continuing innovation within the DeFi world is essential for the landscape to recapture its bullish movement, besides crypto price stabilization. Although the sector has matured over several years ago, greater innovations should come into play to enable more institutions to integrate their platforms in DeFi. Such innovations can enable more users, especially experienced traders and retail investors, to access DeFi ecosystem easily at affordable fees with robust security assurance.