DeFi Encounters Liquidity Challenges Amid Growing Market Turmoil from Exploits

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: Nov 09 2025

Liquidity Decline: Total DeFi liquidity has dropped from $250 billion to $200 billion, with major networks like Ethereum, Solana, and BNB Chain experiencing double-digit losses in Total Value Locked (TVL) due to rising market volatility.
Market Sentiment: The overall sentiment in the DeFi space remains cautious as investors react to recent market shocks and a broad withdrawal of funds across major blockchain ecosystems.
Security Incidents: Two significant security breaches, including a $120 million exploit on Balancer and a $93 million loss at Stream Finance, have intensified market stress and contributed to the liquidity crisis.
Impact on Smaller Networks: Smaller networks like Base and Arbitrum also faced declines, indicating that the liquidity contraction is widespread and affecting all major players in the DeFi sector.

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Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.