DeFi Market Stabilizes at $160B TVL Amid Liquidity Fragmentation

Decentralized finance protocols now hold $160.56 billion in total value locked, revealing a market where liquidity concentrates in select venues. The sector shows parallel growth in spot trading, perpetual contracts, and stablecoin bases—suggesting capital recycling through increasingly efficient platforms.

Tether's dominance reaches 58.9% of the $289.67 billion stablecoin market, providing the foundation for $20 billion weekly expansions in both spot and derivatives trading. Daily volumes hover NEAR equilibrium: $19.43 billion in spot transactions versus $18.83 billion in perpetual swaps.

This balance indicates traders simultaneously engage with speculative leverage products and settlement-driven DEX flows. Market sensitivity persists as funding rates appear tethered more to stablecoin issuance than external capital inflows.