Citing CoinRepublic, the DeFi lending market has seen a sharp decline amid the ongoing crypto market correction, with DeFi TVL dropping to $117.9 billion. Onchain data from CryptoQuant shows that weekly stablecoin borrowing on Aave fell 69% to $1.9 billion by late November 2025, compared to a peak of $6.2 billion in early August. Meanwhile, centralized platforms like Nexo have seen a rebound in borrowing as users increasingly opt to borrow against crypto collateral rather than sell. Evernorth CEO Asheesh Birla predicts a surge in institutional DeFi adoption in 2026, citing regulatory clarity and growing enterprise demand for crypto.
DeFi Lending Contracts Amid Crypto Market Correction, Institutional Adoption Expected in 2026
The Coin RepublicShare
Summary
DeFi lending contracts have taken a hit during the crypto market correction, with total value locked (TVL) falling to $117.9 billion. Crypto market data from CryptoQuant shows stablecoin borrowing on Aave dropped 69% to $1.9 billion by late November 2025, down from $6.2 billion in early August. Centralized platforms like Nexo are seeing a rebound as users prefer borrowing against crypto collateral. Evernorth CEO Asheesh Birla expects stronger institutional DeFi adoption in 2026, driven by clearer regulations and rising enterprise interest in crypto.
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