The total value locked (TVL) in decentralized finance (DeFi) protocols has declined from a peak of $138 billion in December 2024 to $92.6 billion by March 10, 2025, marking a loss of $45 billion since Donald Trump's election as US President. This significant drop highlights ongoing challenges in the DeFi space, particularly for projects like Solana, which has not reached new highs. Ethereum’s TVL also saw substantial outflows, with approximately 800,000 Ether (valued at around $1.8 billion) exiting exchanges amid a price decline, reflecting a shift towards holding or engaging in DeFi activities. Despite Ethereum’s price decline, some investors view current levels as a buying opportunity. The upcoming Pectra upgrade aims to enhance Ethereum's layer-2 efficiencies, addressing liquidity fragmentation and lowering transaction costs, though it has encountered initial issues during testing.

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