Decline in DeFi TVL by 39% Amid Market Slump and Record Hacks in 2026

DeFi total value locked (TVL) fell approximately 39% this year, dropping to slightly above $7 billion. According to Coin Telegraph on April 24, DeFi TVL declined from its initial $115 billion level due to market corrections and a string of hacks. CryptoRank cited the prolonged correction since the crypto market peak in October 2025, including massive liquidations after Bitcoin surpassed $122,000, which accelerated deleveraging across digital assets. While the current correction is less severe than the 2021-2022 bear market, CryptoRank noted improved resilience in the DeFi sector. Security incidents also contributed, with 121 hacks in DeFi causing $942 million in losses, weakening user confidence and accelerating capital outflows.