The DeFi (Decentralized Finance) TVL (Total Value Locked) has crashed by over 39% so far in 2026.
Year-to-date (YTD), the DeFi TVL has plunged by approximately $45 billion, from around $115 billion in early January to about $70 billion on June 24, according to data from CryptoRank.As such, the DeFi TVL has dropped by nearly 39.1% YTD.
The DeFi TVL has declined significantly in 2026 due to the ongoing crypto correction, catalyzed by the AI (Artificial Intelligence) industry boom. Furthermore, BlackRock, Inc. (NYSE: BLK) believes that Bitcoin and other non-AI core assets have been bleeding to AI stocks since late 2025, as Finbold reported.
The Tron (TRX) network and Hyperliquid (HYPE) ecosystem were the only top 10 blockchains to grow their DeFi TVL in 2026. Notably, the Tron network has seen its TVL rise by nearly $220 million in 2026, up around 5% from approximately $4.41 billion on January 1 to about $4.63 billion at press time.
On the other hand, the Hyperliquid network has seen its TVL rise by nearly $100 million in 2026, up by 7% YTD from $1.42 billion on January 1 to $1.52 billion at press time.
DeFi TVL outlook
The DeFi industry has faced a significant headwind in 2026 due to a rise in hacks targeting poorly designed protocols. Moreover, DeFi protocols have experienced 121 hacks YTD, resulting in about $942 million in losses. Notably, the sector saw its highest number of hacks in the second quarter of 2026, thereby boosting investors’ rotation to AI stocks.
The next phase of for the sector could be defined by its ability to facilitate the mainstream adoption of RWA (Real-World Asset) tokenization. Furthermore, tokenization of TradFi (Traditional Finance) has been on the rise in 2026, catalyzed by regulatory clarity in the United States.