The sky darkened for the DeFi ecosystem in April. According to data from DefiLlama, the total value blocked (TVL) fell by $10 billion, a decline of 7% in just one month. A hard blow for the crypto sector, which closed April with 138.6 billion in locked liquidity. Behind these worrying overall figures, certain blockchains have particularly suffered.
Avalanche and Solana are bleeding white in the crypto ecosystem
In detail, few DeFi projects performed well in April. Indeed, among the ten largest blockchains by TVL, Avalanche and Solana experienced a real ordeal.
For Avalanche, the decline is severe with a massive leak of 31.5% of funds committed to its blockchain! A shock for this supposedly promising crypto ecosystem, which is now struggling to turn things around.
Solana is not much better off, having hemorrhaged almost 30% of its DeFi liquidity last month. A worrying underperformance which questions the resilience of this otherwise highly publicized crypto project.
Ethereum resists, bitcoin and some L2s progress
If the general crypto trend was very gloomy in April, a few islands of resistance have, however, emerged. At the head of the pack, Ethereum was able to maintain its status as the dominant DeFi blockchain despite a 14.2% decline in its TVL. Proof of its solidity, the flagship network still captures nearly 69% of the sector's liquidity.
Another glimmer of hope, Bitcoin and several Layer 2 (L2) projects on Ethereum have gained in attractiveness among crypto investors. Driven by the renewed ambitions of Bitcoin, the crypto queen saw its TVL jump 39% to exceed a billion dollars.
At the same time, L2 blockchains such as BASE (+18.4%), BLAST (+4.4%) and Arbitrum have confirmed their upward momentum. Crypto ecosystems increasingly popular with developers wishing to benefit from low-cost and high-performance environments.
Ultimately, this decline in the TVL in April will perhaps act as a salutary shock for all decentralized finance. A major challenge, certainly, but also an opportunity to clean up, clean up the crypto market and start again on even more solid foundations.
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