DeFi TVL Dropped by $48 Billion in Q1 Amid a Sharp Decline in Altcoin Prices
Coinspeaker
DeFi TVL Dropped by $48 Billion in Q1 Amid a Sharp Decline in Altcoin Prices
At the start of 2025, crypto enthusiasts believed that the crypto market was in for a bullish run, especially with the U.S. President Donald Trump’s crypto-friendly policies. The end of the first quarter of 2025 tells a different tale, as DeFi Total Value Locked (TVL) fell to $128.6 billion from the Q4 2024 figure of $177.4 billion.
The total crypto market cap also followed a similar trajectory, falling by 18.6% and losing $633.5 billion in the process, which is a far cry from what happened during Trump’s inauguration date.
Bitcoin’s Performance
Although Bitcoin performed poorly in Q1 2025 behind traditional assets such as US Treasury bills and gold, Bitcoin continued gaining ground in overall crypto dominance.
It rose to 59.1% dominance by the end of last quarter, which was different from what altcoins experienced, according to a report by CoinGecko.
Ethereum TVL’s Performance
This 27.5% decrease in the TVL has been linked to the performance of altcoins. Ethereum was one of the greatest TVL losers, as it reduced from $112.6 billion in Q4 2024 to $72.7 billion in the last quarter. This made the Ethereum ecosystem shed 35.4% of its TVL.
Solana and Other Altcoins’ Performance
Other reasons for this dramatic loss in the DeFi TVL figure is the drop experienced by Base and Solana, as both declined by 15.3% and 23.5%.
BeraChain took the opposite direction from its counterparts as it grew in the Q1 2025 to $5.2 billion in DeFi TVL, solidifying the position as the sixth largest TVL share.
Meme Coins Nosedive
A short while before Trump was inaugurated, the launch of TRUMP and MELANIA meme coins led to an increase in the release of tokens on Pump.fun. With this trend came the growth of meme coins that were linked to different governments and their officials including LIBRA, the meme coin linked to Javier Milei, the President of Argentina.
The coin was rug-pulled by developers soon after its launch. As a result, there has been a drop in the number of tokens released on Pump.fun at the end of the first quarter.
These shifts highlight the volatility within the DeFi and meme coin sectors, underscoring the market’s sensitivity to both political developments and investor sentiment. As Q2 begins, all eyes will be on whether DeFi can regain momentum or continue its downward slide.
DeFi TVL Dropped by $48 Billion in Q1 Amid a Sharp Decline in Altcoin Prices
Read More
DeFi TVL Dropped by $48 Billion in Q1 Amid a Sharp Decline in Altcoin Prices
Coinspeaker
DeFi TVL Dropped by $48 Billion in Q1 Amid a Sharp Decline in Altcoin Prices
At the start of 2025, crypto enthusiasts believed that the crypto market was in for a bullish run, especially with the U.S. President Donald Trump’s crypto-friendly policies. The end of the first quarter of 2025 tells a different tale, as DeFi Total Value Locked (TVL) fell to $128.6 billion from the Q4 2024 figure of $177.4 billion.
The total crypto market cap also followed a similar trajectory, falling by 18.6% and losing $633.5 billion in the process, which is a far cry from what happened during Trump’s inauguration date.
Bitcoin’s Performance
Although Bitcoin performed poorly in Q1 2025 behind traditional assets such as US Treasury bills and gold, Bitcoin continued gaining ground in overall crypto dominance.
It rose to 59.1% dominance by the end of last quarter, which was different from what altcoins experienced, according to a report by CoinGecko.
Ethereum TVL’s Performance
This 27.5% decrease in the TVL has been linked to the performance of altcoins. Ethereum was one of the greatest TVL losers, as it reduced from $112.6 billion in Q4 2024 to $72.7 billion in the last quarter. This made the Ethereum ecosystem shed 35.4% of its TVL.
Solana and Other Altcoins’ Performance
Other reasons for this dramatic loss in the DeFi TVL figure is the drop experienced by Base and Solana, as both declined by 15.3% and 23.5%.
BeraChain took the opposite direction from its counterparts as it grew in the Q1 2025 to $5.2 billion in DeFi TVL, solidifying the position as the sixth largest TVL share.
Meme Coins Nosedive
A short while before Trump was inaugurated, the launch of TRUMP and MELANIA meme coins led to an increase in the release of tokens on Pump.fun. With this trend came the growth of meme coins that were linked to different governments and their officials including LIBRA, the meme coin linked to Javier Milei, the President of Argentina.
The coin was rug-pulled by developers soon after its launch. As a result, there has been a drop in the number of tokens released on Pump.fun at the end of the first quarter.
These shifts highlight the volatility within the DeFi and meme coin sectors, underscoring the market’s sensitivity to both political developments and investor sentiment. As Q2 begins, all eyes will be on whether DeFi can regain momentum or continue its downward slide.
DeFi TVL Dropped by $48 Billion in Q1 Amid a Sharp Decline in Altcoin Prices
Read More