The decentralized finance (DeFi) sector has skilled a pointy contraction since early October, with Complete Worth Lock (TVL) falling by greater than 21%.
Coupled with waning curiosity from institutional buyers, this decline has heightened issues about Ethereum (ETH) demand and worth trajectory in November.
Report double-digit TVL loss on DeFi protocols
In accordance with knowledge from DeFiLlama, the whole quantity of DeFi TVL reached over $172 billion in early October. This marked the best stage since late 2021. Nonetheless, this once-in-a-several-year peak didn’t final lengthy.
In accordance with the most recent statistics, TVL fell to round $136.26 billion in November, wiping out greater than $36 billion in worth.
DeFi TVL. Supply: Defilama
Main DeFi protocols have suffered vital losses over the previous month. Aave, Lido, EigenLayer and Ethena reported declines in TVL starting from 8% to 40%, highlighting a broader slowdown within the sector.
One of many essential components behind this decline is Ethereum’s worth correction. After the market crash in October, ETH continued to face difficulties, with its worth dropping to almost $3,000 in early November.
However, the weak point deepens. ETH-denominated TVL has been steadily reducing since April. This occurred regardless of the ETH worth growing. This divergence means that ETH’s rise was pushed by components aside from DeFi progress.
Specifically, two main components drove ETH demand: digital asset treasury funds (DATs) and exchange-traded funds (ETFs). In 2025, ETFs recorded sturdy inflows whereas giant institutional buyers elevated their publicity to ETH.
However this accumulation can also be slowing. In accordance with figures from Strategic ETH Reserve, mixed DAT and ETF holdings fell from 12.95 million ETH in October to 12.75 million ETH in November.
ETH holdings via ETFs and DATs. Supply: Strategic ETH Reserve
Moreover, BeInCrypto reported final week that the ETH ETF had an influx of $12.1 million on November sixth after six consecutive days of outflows. However, this pattern reversed the subsequent day. In accordance with SoSoValue knowledge, on November 7, outflows had been $46.6 million.
Weaker demand on each the retail and institutional fronts may make Ethereum susceptible to additional downward strain. However, latest macroeconomic boosts have led to a slight restoration in ETH. As of this writing, ETH is buying and selling at $3,609, representing a 6.6% improve in comparison with the previous day.
Ethereum worth efficiency. Supply: BeInCrypto Markets
Analyst Ted Pillows pointed to $3,700 as a key stage for Ethereum.
“ETH is at the moment approaching a key resistance stage. If Ethereum closes the each day candlestick above the $3,700 stage, it may transfer greater in the direction of the $4,000 stage,” Pillows posted.
The analyst famous that if Ethereum fails to interrupt out of this stage, it may see a pullback in the direction of the $3,400 help space.
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