The Decentralized Finance (DeFi) sector has skilled a pointy contraction since early October, as the whole worth locked (TVL) dropped over 21%.
Coupled with waning institutional curiosity, the decline has raised considerations about Ethereum’s (ETH) demand and its value trajectory in November.
DeFi Protocols Register Double-Digit TVL Losses
Knowledge from DeFiLlama confirmed that the whole DeFi TVL reached over $172 billion in early October. This marked its highest degree since late 2021. Nevertheless, this multi-year peak was short-lived.
The most recent figures point out that TVL has since fallen to round $136.26 billion in November, erasing greater than $36 billion in worth.
DeFi TVL. Supply: DeFiLlama
Main DeFi protocols endured important losses over the previous month. Aave, Lido, EigenLayer, and Ethena reported TVL declines starting from 8% to 40%, highlighting the sector’s widespread slowdown.
One of many key drivers behind this dip is Ethereum’s value correction. Following October’s market crash, ETH has continued to face challenges, with the worth dropping near $3,000 in early November.
However, the weak point runs deeper. The ETH-denominated TVL has been steadily declining since April. This occurred at the same time as ETH costs have been climbing. This divergence advised that ETH’s rally was pushed by sources aside from DeFi progress.
Notably, two main components drove ETH demand: digital asset treasury funds (DATs) and exchange-traded funds (ETFs). In 2025, main institutional gamers elevated their publicity to ETH, whereas ETFs recorded robust inflows.
But, this accumulation has additionally slowed. In keeping with figures from the Strategic ETH Reserve, mixed DAT and ETF holdings have fallen from 12.95 million ETH in October to 12.75 million ETH in November.
ETH Holdings By ETFs and DATs. Supply: Strategic ETH Reserve
Moreover, BeInCrypto reported final week that, after six consecutive days of outflows, ETH ETFs noticed $12.1 million in inflows on November 6. Nonetheless, this pattern reversed the next day. SoSoValue knowledge highlighted $46.6 million in outflows on November 7.
Weakening demand throughout each retail and institutional fronts might doubtless go away Ethereum weak to additional draw back stress. Regardless of this, current macroeconomic catalysts have led to a modest restoration for ETH. On the time of writing, ETH was buying and selling at $3,609, representing a 6.6% improve over the previous day.
Ethereum Value Efficiency. Supply: BeInCrypto Markets
Analyst Ted Pillows has pointed to $3,700 as a key degree for Ethereum.
“ETH is approaching a key resistance degree now. If Ethereum closes a each day candle above the $3,700 degree, it might rally in direction of the $4,000 degree,” Pillows posted.
The analyst famous that if Ethereum fails to interrupt above this degree, it might retrace towards the $3,400 help space.
The publish Over $36 Billion in DeFi Worth Wiped Out — What Does It Imply for Ethereum? appeared first on BeInCrypto.
