defi

According to the latest weekly report from Gate Ventures, market risk appetite has further cooled, leading to an overall correction in the cryptocurrency market. BTC fell 6.4% over the week, ETH fell 7.9%, and the total market capitalization of cryptocurrencies declined by 5.4%, with the Fear and Greed Index dropping into the "Extreme Fear" range.In terms of capital flow, the spot BTC ETF saw a net outflow of $1.79 billion in a single week, setting a record for the largest single-week net outflow in history, and has recorded outflows for seven consecutive weeks; the spot ETH ETF experienced a net outflow of $273.3 million during the same period, putting continued pressure on market liquidity. Meanwhile, STRC under Strategy has traded below par value for the sixth consecutive week, with the market continuing to focus on its dividend rate adjustments and capital operation progress.In terms of industry development, RWA applications and blockchain infrastructure construction are continuing to advance. Enso launched an RWA application supporting the trading of over 500 tokenized assets, further promoting the development of the tokenized asset trading ecosystem; the SEC and CFTC are coordinating to publicly solicit market opinions on the portfolio margin system, continuously improving market infrastructure.In terms of investment and financing, a total of 18 financing deals were completed last week, with a disclosed total financing amount of $210.3 million. Among them, the DeFi sector had the highest financing scale, raising a total of $114 million, indicating that market funds continue to focus on on-chain financial innovation and infrastructure construction.

According to DefiLlama data, the total locked value (TVL) of DeFi across the network once fell below 70 billion USD, setting a new low since February 2024. Currently, the total TVL across the network is approximately 70.129 billion USD.From the peak of about 171 billion USD in October 2025, DeFi TVL has cumulatively decreased by about 60%. In the past 7 days, the total market value of stablecoins has slightly decreased by 0.97%, while DEX spot trading volume has increased by 8.21% compared to the previous week.

DefiLlama data shows that in the past week, the income returned to token holders from DeFi protocols was mainly concentrated in a few projects, with the top ten protocols accounting for over 80% in total.Among them, Hyperliquid ranked first with approximately $12.3 million, accounting for about 43.9%; Pump ranked second with about $3.5 million, accounting for about 12.6%; protocols such as Aerodrome, Uniswap, and Chainlink also made it to the top. Holders Revenue refers to the value returned to token holders through methods such as token buybacks, burns, or distributions to stakers.

According to data from CryptoRank.io, the total TVL of global liquid staking protocols fell to $33.4 billion in the second quarter of 2026, a decrease of 56.1% from the historical high of $76 billion in the third quarter of 2025, marking three consecutive quarters of decline.Specifically, the fourth quarter of 2025 was $61.4 billion, the first quarter of 2026 was $45.2 billion, and the second quarter further dropped to $33.4 billion. The liquid staking sector continues to face pressure, reflecting that the overall DeFi ecosystem is still in a weak cycle.

The Sui ecosystem lending protocol Suilend officially announced that the DeFi development team Bluewater Labs will acquire Suilend and its ecological products SpringSui and STEAMM (AMM), and will take over its subsequent development and operational work. In addition, Bluefin co-founder Zabi will serve as the new CEO of Suilend.The announcement stated that after the acquisition is completed, Suilend will continue to operate as an independent platform, retaining its own brand, product direction, and underlying infrastructure. During the transition period, the team will adopt a security-first strategy, and users will not need to take any action; all current protocol functions such as deposits, lending, staking, and trading will continue to operate as usual.

The founder of DefiLlama, 0xngmi, announced the launch of a new off-chain proof/verification service, which will be used to verify and audit off-chain data, including information such as bank account balances, to help projects achieve reliable verification of real-world assets and other off-chain data.

CryptoRank's latest report shows that the total value locked (TVL) in DeFi has declined for six consecutive months, dropping from approximately $115 billion in January 2026 to about $70 billion currently, with a cumulative decline of 39% this year, reflecting the ongoing adjustment following the peak of the crypto market in 2025.Data indicates that since 2026, there have been 121 security incidents in the DeFi sector, resulting in total losses of approximately $942 million. Among these, 85 attack incidents occurred in the second quarter, with losses of about $775 million, making it one of the most frequently attacked quarters on record. The attacks on Drift Protocol ($295 million) and KelpDAO ($293 million) in April accounted for more than half of the annual losses.Among the top ten public chains by TVL, only TRON and Hyperliquid achieved positive growth. Specifically, TRON's TVL increased by about 5% this year, mainly supported by USDT transfers, stablecoin settlements, and lending demand; Hyperliquid grew by approximately 6.7%, benefiting from its leading position in the on-chain perpetual contract market and the expansion of the HyperEVM ecosystem.However, the report points out that this round of the DeFi downturn is significantly milder than the cycle from 2021 to 2022. During that year, DeFi TVL plummeted by over 70% within seven months, whereas current funds are increasingly flowing into stablecoins, RWA, derivatives, and infrastructure sectors, indicating a more diversified and mature market structure compared to the previous cycle.

Standard Chartered stated that Aave could rise 50 times to $3,500 by 2030. The bank expects that as DeFi assets grow 37 times and tokenized finance goes on-chain, Aave will benefit.

Castle Labs released an RWA industry report stating that the on-chain tokenization of real-world assets (RWA) has reached $28.2 billion, an increase of about 500% compared to early 2025, with a peak of $31.8 billion.Currently, tokenized U.S. Treasury bonds and money market funds remain the largest category, with a scale of about $17 billion, accounting for nearly 60% of the entire RWA market, among which BlackRock BUIDL and Hashnote USYC have both surpassed $3 billion in scale. The report also points out that tokenized stocks have become one of the fastest-growing RWA sub-sectors, growing over 170% this year, significantly higher than the approximately 60% growth rate of tokenized U.S. Treasury bonds.Castle Labs believes that the expansion of stablecoins, the entry of institutional funds, and the advancement of regulatory frameworks such as CLARITY and MiCA are driving the continuous on-chain migration of traditional financial assets. However, the current industry's biggest bottleneck has shifted from asset issuance to redemption mechanisms and DeFi composability. Currently, of the approximately $28.2 billion in on-chain RWA, only about $3 billion has entered DeFi, with a penetration rate of about 10%.

DefiLlama data shows that the second quarter of 2026 has become the most active period for recorded cryptocurrency hacking attacks, with a total of 83 independent attack incidents, setting a historical high. Despite the increase in attack frequency, the total losses for the quarter were approximately $755.3 million, still lower than the $3.56 billion in the fourth quarter of 2020.Among these, the $293 million attack on KelpDAO and the $280 million attack on Drift Protocol accounted for more than three-quarters of the total losses for the quarter. Cross-chain bridges were the largest source of losses, with related attacks resulting in approximately $351 million stolen.Earlier this month, Humanity Protocol lost $36 million, Aztec Connect's passive smart contracts faced two attacks, each resulting in losses of about $2.1 million, and the decentralized exchange Raydium experienced a $1.3 million attack in June.

DeFi protocol Altura's CEO Ranveer Arora announced that due to "unprecedented" withdrawal requests over the weekend, the platform will orderly close its stablecoin yield vault. It is reported that within 24 hours prior to the announcement, Altura processed over 8.5 million USDT in instant redemptions.This wave of withdrawals was primarily influenced by market panic triggered by the severe de-pegging of another yield-bearing stablecoin, Main Street (msUSD). Although Altura officials clarified that they have no direct risk exposure to Main Street, concerns arose in the market because both projects share the same reserve proof service provider, Accountable. Currently, Altura has notified all counterparties and has begun to unwind its strategic funds in exchanges, private credit, and real-world assets (RWA) to ensure that all redemptions can be completed fairly and transparently. It is understood that the total locked value of the vault on HyperEVM once reached 39 million dollars.

According to SoSoValue data, most sectors in the cryptocurrency market have risen, with the AI sector performing outstandingly, up 2.87% in 24 hours. Among them, Unibase (UB) rose 54.91%, Billions Network (BILL) rose 8.37%, and Worldcoin (WLD) rose 6.26%.Other standout sectors include: the DeFi sector, which rose 1.02% in 24 hours, with LAB (LAB) rising 20.69%; the CeFi sector rose 0.63%, with OKB (OKB) rising 1.41%; the Meme sector rose 0.56%, with OFFICIAL TRUMP (TRUMP) rising 7.77%; the Layer2 sector rose 0.21%, with Polygon (ex-MATIC) (POL) rising 0.93%; the Layer1 sector rose 0.20%, with Aptos (APT) rising 2.76%.In other sectors, the PayFi sector fell 0.03%, but Ultima (ULTIMA) rose 5.08%; the GameFi sector fell 2.61%, with Axie Infinity (AXS) significantly dropping 14.40%.The cryptocurrency sector indices reflecting historical market trends show that the ssiMeme, ssiCeFi, and ssiMAG7 indices rose 0.79%, 0.66%, and 0.60%, respectively.

On-chain data shows that assets under Coinbase have become the most important source of traffic for the decentralized lending protocol Morpho. USDC and cbBTC together account for 53% of total deposits on the Morpho platform, with Coinbase users contributing 83% of cbBTC deposits and 59% of USDC deposits. The lending side is also highly dependent on the Coinbase ecosystem. Of the $2.3 billion USDC loans on the Morpho platform, approximately $1.2 billion comes from Coinbase users using cbBTC as collateral, accounting for more than half.Analysts point out that a deep symbiotic relationship has formed between the two: Coinbase takes on the role of user acquisition and asset flow, while Morpho acts as the yield layer that brings these assets into on-chain operations. This case once again confirms that in the crypto industry, the moat of distribution channels is often stronger than the technology itself.