DeFi TVL declined $13.4B to $122.25B week-over-week; stablecoin supply fell $13.5B to $305.24B, signaling potential capital flight from on-chain markets.
DeFi & Yields ·
DeFi total value locked fell $13.4 billion week-over-week to $122.25 billion as of October 16, while stablecoin supply declined $13.5 billion to $305.24 billion in the same period, according to weekly data released by Sentora. The near-identical magnitude of both declines suggests capital is withdrawing from on-chain markets rather than rotating between protocols.
Concurrent moves in lending markets underscore tightening conditions. USDC and USDT lending benchmark rates both fell, reaching 4.88% and 4.27% respectively. The volume of high-risk loans positioned less than 5% from liquidation prices contracted to $67.2 billion, indicating reduced leverage activity.
What remains unclear is whether the capital outflow reflects a temporary shift in market sentiment, redemptions tied to broader macroeconomic factors, or repositioning ahead of anticipated volatility. The near-synchronized TVL and stablecoin supply movements prevent attribution to any single cause.