DeFi’s shakeout is a stress test, not a death sentence
CoinDesk·1h ago·Neutral
What Happened
DeFi protocol ZeroLend shut down in February after three years, citing thin margins and hacks. Several other DeFi platforms wound down in 2025-2026 due to low usage and weak business models. Total value locked fell from $167 billion to $100 billion. Stablecoin market capitalization exceeded $300 billion. Analysts view this as filtration rather than extinction, with capital rotating toward lower-volatility instruments and established protocols like Aave and Morpho.
Key Entities
ZeroLendPolynomialDeFiAaveMorphoTotal Value LockedStablecoinMiCAEuropeUnited States