The decentralized finance (DeFi) lending market is undergoing a dramatic contraction as total deposits across top protocols plunge by 36%, from $125 billion to $79.6 billion, since October 2025, according to Artemis data. This $45 billion decline reveals that investors are retreating from major crypto lending platforms amid heightened risk perception and evolving capital allocation strategies. Crypto lending is shrinking. Since October, deposits across major protocols fell from $125B to $79.6B, a 36% decline. Nearly the entire drop comes from a handful of protocols: • Aave: −$27.6B• Spark: −$5.4B• Euler: −$2.6B• Fluid: −$2.4B• Compound: −$2.0B… pic.twitter.com/L22ZtezsBJ — Artemis (@artemis) March
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