2026-01-07 15:22:20

The DeFi market in 2025 is like a roller coaster that makes your heart race.

At the beginning of the year, breakthroughs in Layer 2 performance and massive institutional capital inflows brought hope to everyone. Total Value Locked (TVL) soared from $182.3 billion to $277.6 billion, hitting a new all-time high. At that time, the goal of reaching a trillion-dollar ecosystem seemed within reach.

The turning point came quickly. In Q4, a sudden flash crash abruptly halted the momentum, causing TVL to plummet to $189.3 billion instantly. The overall annual increase was only 3.86%, almost negligible. This intense volatility exposed some deep-rooted issues in the DeFi market—massive leverage built on fragile foundations, fragmented governance, and risk points everywhere.

This year, we saw many changes. Lido was no longer the undisputed king in staking, Aave experienced internal governance troubles, Hyperliquid secured the top spot among perpetual contract DEXs, but new players are watching closely. Stablecoins also fluctuated between yields and regulatory pressures.

Interestingly, DeFi is no longer just an experimental playground for crypto enthusiasts. Although progress has been somewhat shaky, it is genuinely moving closer to the core of global financial infrastructure. Staking, lending, RWA—these sectors are continuously evolving, and the market is gradually filtering out projects and models that can truly survive.

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FromMinerToFarmer

· 01-07 15:48

The wave of excitement at the beginning of the year really couldn't be sustained; a 3.86% increase would make anyone who holds it bleed from the mouth. Wait, did Lido really fall behind? I thought it could keep winning. Leverage, this thing, will eventually have to be paid back.

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fomo_fighter

· 01-07 15:44

The initial wave of hope at the beginning of the year really couldn't hold up. A flash crash in Q4 sent everything back to its true form—a 3.86% gain is honestly frustrating. Leverage piled on a fragile foundation really hits the mark. I've said it before, there are too many risk points in this DeFi system. Lido falling out of favor, Aave internal conflicts, Hyperliquid can't maintain its position... honestly, no one can monopolize anything these days. Speaking of RWA as a track, who's actually going to survive in the end? Feels like everyone's just bluffing. Getting closer to global financial infrastructure? Solve your governance fragmentation problems first. Every time people say they're going to break through, but one downturn and the original form is exposed. This kind of volatility is really exhausting. Stablecoins swinging between yield and regulation... isn't that just dancing between the sickle and the gallows? Project selection is one thing, but plenty die anyway, don't they?

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WalletDetective

· 01-07 15:34

Up and down, it's all about the thrill of the heartbeat Is Lido really not working anymore? Let's see how the new players do A 3.86% increase is indeed a bit awkward Leverage stacking into a house of cards, it will collapse sooner or later Is RWA really about to get back on track? I’m not so sure

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RumbleValidator

· 01-07 15:25

3.86% increase? Ha, stacking leverage on a broken system and still trying to reach trillions, the data is right here, the consensus mechanism is so fragile that it collapses with a single poke. Fragmented governance is the root cause; verification efficiency can't keep up with node stability, it's all just empty talk. Lido losing its position, Aave internal conflicts—what does this indicate? The project can't survive, the model needs a complete overhaul. Did the slap in Q4's flash crash wake you up? Low decentralization, numerous risk points—this is the current situation. Staking yields are attractive, but what about network reliability? I want to see who can truly survive until the next bull market.

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NotFinancialAdvice

· 01-07 15:24

Full of confidence at the beginning of the year, but directly heartbroken in the fourth quarter. A 3.86% increase shows numbness. DeFi is still that DeFi, but the players are already different. Lido's throne is not guaranteed, Aave is in internal conflict, and Hyperliquid also has to watch out for newcomers. It feels like no one can truly feel at ease. Leverage accumulation + governance fragmentation, this is probably the current fragility. By the way, can RWA really become the next hot trend, or is it just another concept for harvesting retail investors?

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liquiditea_sipper

· 01-07 15:23

At the beginning of the year, there was full enthusiasm, but by the end of the month, everything had fallen apart. This is the lesson DeFi has taught me. Honestly, that 3.86% increase... is not even as good as a fixed deposit in the bank. Lido fell from grace, Aave had a major issue, and perpetual DEXs are all causing trouble; it feels like the industry is undergoing self-cleaning. Leverage piled on a fragile foundation will eventually collapse. In fact, we retail investors are just the bagholders. RWA (Real-World Assets) indeed has potential, but we should wait until DeFi sorts out its own messes first.

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