Capital shifts to stablecoins as DeFi protocols bleed TVL

The market added billions in stablecoins, but DeFi TVL dropped, signaling that capital isn’t leaving crypto, it’s just parked.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

A growing stablecoin supply usually hints at bullish deployment, but this time, the money stayed on the sidelines. TVL contraction and cautious on-chain activity suggest traders are waiting, not rotating.