DeFi Value Plummets as Ethereum Continues to Struggle

Since November 2024, the value locked in decentralized finance (DeFi) protocols has experienced a sharp decline, erasing all the gains made after Donald Trump's election.

From a peak of $138 billion in mid-December, it has fallen to $92.6 billion by March 10, according to analyst Miles Deutscher.

Ethereum, in particular, has been hit hard. Despite Bitcoin’s rise past $109,000, Ethereum has struggled, failing to surpass its all-time high of $4,787 from 2021.

Its total value locked (TVL) dropped by $30.6 billion, signaling a shift in market sentiment. Solana, too, has faced criticism as the enthusiasm surrounding its memecoins fades.

Moreover, Ethereum saw significant movement in its assets in early March, with nearly 800,000 ETH worth about $1.8 billion leaving exchanges. This suggests that despite a decline in Ether’s price, many holders are still viewing the current levels as an opportunity to accumulate more.

Ethereum’s network is also undergoing an upgrade, with the Pectra update aiming to reduce transaction costs and enhance liquidity. However, the upgrade has faced some setbacks, including technical issues on the testnet, though fixes have been applied.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.