Binance Research reports broad crypto market contraction in H1 2026: DeFi TVL down $43.4B (38%), major L1 cap down $246.5B (42%), L2 user activity fell 77%, but prediction markets surged 86% to $51.6B monthly volume.
DeFi & Yields ·
Crypto market activity contracted broadly across major categories in the first half of 2026 rather than rotating between sectors, according to research findings. DeFi total value locked fell $43.4 billion to a 38% decline, while the combined market capitalization of six major layer-one blockchains dropped $246.5 billion, representing a 42% decrease. Layer-two user operations declined approximately 77% between January and June, though prediction market trading volume surged 86% to reach $51.6 billion monthly, with two platforms accounting for 92% of June's volume.