According to external sources, DeFi funding has been steadily withdrawn since 2026, and the total lockout volume has dropped from approximately $115.0 billion at the beginning of the year to nearly $70 billion in June. The article argues that, in addition to a fall in market risk, security incidents are intense and are further reducing the willingness of users to remain on the chain.

TVL is back and forth.

CryptoRank shows that DeFi TVL is falling every month this year, with a drop of about 39% this year. The withdrawal would be larger if compared to the height of the phase of over $150 billion at the end of 2025.

The article mentions that the market has significantly cooled after the last round of expansion, and that part of the funding is being withdrawn from high-risk agreements to more prudent allocation.

The number of attacks rose in the second quarter.

Security is another line in the text. CryptoRank shows that 85 incidents of encrypted attacks were recorded in the second quarter of 2026, one of the most intensive in recent years, by number of incidents.

Although the scale of a single loss has not been able to update historical peaks, the increase in the frequency of the attack itself is sufficient to influence users ' judgement of the security of the agreement. According to the article, it is more difficult for users to keep funds in the chain for long periods of time following recurring loopholes and thefts of multiple agreements.

  • 85 attacks recorded in the second quarter of 2026
  • The cumulative number of hackers since 2026 has been 121
  • The loss in the year is close to $1 billion.

Liquidity not lost but more selective

The article also mentioned that previously, DeFi TVL had dropped from close to $178 billion to about $72.5 billion, while the supply of stable currency remained close to approximately $315 billion. This means that the liquidity in the encrypted market did not disappear as a whole, but rather did not continue to remain in the DeFi agreement on a large scale.

Core change lies in more prudent choice of funding. Compared with the pursuit of high returns, users value the agreement for its continued security record, wind control and financial protection capabilities.

The article argues that until the agreement does not prove its safety more effectively, the restoration process of DeFi TVL may still be repeated and it is difficult to achieve a coherent recovery.