Binance Research reports DeFi TVL down 38% and major Layer-1 market caps down 42% in H1 2026, signaling broad de-risking across crypto markets.
Macro & Markets ·
Binance Research found that on-chain markets contracted broadly during the first half of 2026 rather than rotating capital between sectors, with DeFi total value locked declining $43.4 billion to a 38% loss and major Layer-1 market capitalizations falling $246.5 billion or 42%. Ethereum spot exchange-traded fund holdings dropped from over 6 million to 5.2 million ETH, while Layer-2 user activity declined approximately 77% between January and June. The contraction signals de-risking across the ecosystem, as only prediction markets, decentralized exchanges, lending protocols, and tokenized real-world assets maintained notable activity levels during the period.