TLDR Ethereum’s TVL drops 13% to $74.2 billion, still holding 62% market share. Solana and Arbitrum each face 14% declines in DeFi TVL, reflecting market slowdowns. Balancer suffers a $120 million exploit due to a rounding error in smart contract. Stream Finance loses $93 million, causing Elixir to shut down deUSD stablecoin. The DeFi sector [...] The post DeFi Market Experiences Sharp TVL Decline Across Major Blockchains appeared first on CoinCentral.TLDR Ethereum’s TVL drops 13% to $74.2 billion, still holding 62% market share. Solana and Arbitrum each face 14% declines in DeFi TVL, reflecting market slowdowns. Balancer suffers a $120 million exploit due to a rounding error in smart contract. Stream Finance loses $93 million, causing Elixir to shut down deUSD stablecoin. The DeFi sector [...] The post DeFi Market Experiences Sharp TVL Decline Across Major Blockchains appeared first on CoinCentral.

DeFi Market Experiences Sharp TVL Decline Across Major Blockchains

2025/11/10 05:47

TLDR

  • Ethereum’s TVL drops 13% to $74.2 billion, still holding 62% market share.
  • Solana and Arbitrum each face 14% declines in DeFi TVL, reflecting market slowdowns.
  • Balancer suffers a $120 million exploit due to a rounding error in smart contract.
  • Stream Finance loses $93 million, causing Elixir to shut down deUSD stablecoin.

The DeFi sector has been shaken by a sharp decline in Total Value Locked (TVL) across several major blockchains. Ethereum, Solana, Arbitrum, BNB Smart Chain, and Base all experienced significant losses, with Ethereum seeing a 13% drop. Security breaches, including high-profile exploits, have added to the downturn, leading to growing concerns about the vulnerabilities within the decentralized finance ecosystem.

TVL Declines Across Major DeFi Blockchains

Recent data reveals that the total value locked in decentralized finance (DeFi) platforms has fallen dramatically. The biggest decline has been observed in Ethereum, the largest DeFi network, where TVL dropped by approximately 13%, now standing at $74.2 billion. Despite the decrease, Ethereum still holds more than 62% of the DeFi market share.

Solana and Arbitrum, two other significant players in the space, saw steeper losses, with each experiencing a 14% drop. Solana now has a TVL of around $10 billion, while Arbitrum’s stands at $3 billion. BNB Smart Chain and Base also suffered declines, with their TVLs falling by 10% and 12%, respectively. As a result, the total DeFi TVL dropped from $150 billion to $130 billion, reflecting a slowdown in borrowing, lending, and staking activities.

Security Breaches Exacerbate the Downturn

The decline in TVL has been compounded by several high-profile security breaches, which have intensified concerns within the DeFi community. One of the most significant incidents occurred on November 3, when Balancer, a well-established DeFi platform, was exploited. Attackers drained over $120 million from its V2 vaults. The breach was traced to a rounding error in the batchSwap feature, which allowed multiple swaps in a single transaction. The error enabled attackers to manipulate pool balances and extract funds.

Following this, Stream Finance reported the loss of around $93 million managed by an external fund. This led the protocol to halt all withdrawals and deposits, halting further transactions. The incident caused a ripple effect, with Elixir, a liquidity provider, announcing it would shut down its synthetic stablecoin, deUSD, due to the fallout.

Persistent Vulnerabilities in DeFi Protocols

These security breaches have brought attention to the ongoing vulnerabilities in DeFi protocols. Despite years of development and improvements, decentralized finance platforms remain susceptible to attacks due to flaws in design and governance. The Balancer exploit highlighted issues with smart contract logic, while the Stream Finance incident underscored the risks associated with external fund management.

DeFi platforms rely on smart contracts to execute transactions without intermediaries, but flaws in their design can be exploited by attackers. In the case of Balancer, the error in the batchSwap feature demonstrated how minor coding mistakes could lead to significant financial losses. This has raised further concerns about the sector’s ability to secure user funds.

The Future of DeFi Amid Uncertainty

As DeFi continues to grow, the recent downturn in TVL and the rise in security breaches have prompted the community to reconsider the fundamental architecture of these platforms. While DeFi has revolutionized the financial industry by offering decentralized alternatives to traditional financial systems, these issues point to the need for more robust security measures and better governance frameworks.

In light of these events, DeFi platforms may need to reassess their risk management strategies. For investors and users, the sharp TVL decline signals a potential slowdown in the growth of decentralized finance. How the industry addresses these vulnerabilities will determine its ability to regain user trust and sustain long-term growth.

The post DeFi Market Experiences Sharp TVL Decline Across Major Blockchains appeared first on CoinCentral.

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