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In November 2021, DeFi reached a staggering total value locked (TVL) of $175 billion. Today, however, that number has plummeted to around $95 billion. During this time, despite a general price drop in cryptocurrencies, assets like Bitcoin and Solana rapidly gained popularity, leading to significant price increases for those coins. Solana, for instance, reached a peak of over $260, only to fall 50% down to $142 today.
Ethereum, often touted as the backbone of DeFi, has also seen minimal movement, which raises concerns for the DeFi ecosystem as a whole. With over half of the entire decentralized finance market relying on Ethereum's network, any growth in Ethereum’s value could signal a resurgence in DeFi.