Post #2316

DeFi tokens took a heavy hit over the past 3 months, with an average drawdown around 50% and some names like FT down ~75%. Even larger caps like AAVE, CRV, and WLFI are sitting deep in the red, which shows this was not isolated to smaller plays. TVL only dropped ~7.5% over the same period, so usage held up better than price. That gap usually points to repricing of risk rather than a full exit from the sector. Feels like leverage and narratives got flushed, while the underlying activity is still there. Markets are forcing a reset on valuations before the next leg.