The DeFi sector may be showing early signs of recovery after a difficult first half of 2026 marked by nearly $1 billion in hacks and exploits and a prolonged decline in crypto markets. According to CryptoRank, total DeFi total value locked (TVL) increased 5.3% in July to $73 billion, ending months of declines. TVL had dropped from $154 billion in October 2025 to $70 billion in June 2026, making July the first monthly increase in nearly a year. While the rebound is modest, it suggests capital may be gradually returning to decentralized finance protocols.
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