DeFi Markets Plummet as Traditional Finance Integration Takes Hold

The on-chain cryptocurrency market experienced a decline in the first half of 2026, with decentralized finance (DeFi) total value locked (TVL) dropping 38% and layer-one blockchains' combined market capitalization falling 42%, according to Binance Research.

The report found that DeFi TVL declined by $43.4 billion, while the market capitalization of six major layer-one blockchains, including Ethereum, Solana, and BNB Chain, fell by $246.5 billion between January and June.

Ethereum's average gas fees dropped 75% year-over-year after a network upgrade increased the gas limit, but transaction volume rose 50%. As a result, Ethereum's estimated annual revenue is projected to decline 53% compared to the previous year.