DeFi TVL Falls $1.34B This Week to $122.25B

The near-identical scale of the TVL and stablecoin declines points to a single mechanism rather than two separate stories: stablecoins are the settlement layer of DeFi, so when supply contracts, locked value contracts with it. That reading matters because it suggests the drawdown is broad de-risking rather than a rotation out of a specific protocol or chain. The open question is whether the two measures continue moving in lockstep, which would signal sustained capital exit, or whether TVL stabilizes while stablecoin supply keeps shrinking — a pattern that would imply collateral values are holding even as dry powder leaves.