Despite a $400 billion crypto market cap loss in the past 30 days, analysts argue that the market is witnessing a reset for the next DeFi cycle.
By Parth Dubey
Editor Julia Sakovich
Updated
2 mins read
The crypto market has recently faced major volatility, shedding nearly $400 billion in total market cap over the past month. Investor sentiment has plummeted, with the market sentiment hitting fear levels. Yet, according to 10x Research, the data tells a more optimistic story.
In a recent report titled “Is This the First Chapter of the 2026 DeFi Cycle?,” 10x Research explained that the market is now quietly preparing for its next major growth phase.
While surface-level market trends appear stagnant, on-chain metrics, such as user-driven transactions, suggest that a new DeFi expansion is near. The GENIUS Act has already passed into law, with the Market Structure bill expected to follow.
At the same time, Ethereum-based stablecoin issuance has surged by $48 billion since the recent US election. This has dramatically outpaced Tron’s $15.8 billion growth after years of parallel performance.
However, this inflow has not yet been mirrored in prices. Analysts believe this silent capital buildup suggests early positioning for the next bull run, not a false start. Such structural accumulation generally leads to significant upswings in decentralized finance (DeFi) activity.
Notably, in Q3 2025, the global DeFi market cap rose by over 40% QoQ, reclaiming dominance in the crypto sector. Moreover, the total value locked (TVL) across all DeFi protocols reached roughly $135.28 billion at the time of writing, up 40 % in the past year.
The report also notes that on-chain metrics, such as user-driven transactions, are offering clearer signals than short-term price movements. If DeFi truly enters a new expansion phase, traders should strategically manage risk to navigate the cycle, according to 10x Research.
Is This the First Chapter of the 2026 DeFi Cycle?
A major shift is unfolding in the crypto world, but not where most investors are looking.
Regulatory clarity in the U.S. is quietly emerging at the same time that billions in stablecoins are migrating to Ethereum, yet prices… pic.twitter.com/N5tGHOd0fO
— 10x Research (@10x_Research) November 11, 2025
Meanwhile, the recent 11.32% drop in Open Interest (OI) over seven days marks a major deleveraging phase in the derivatives market. According to a CryptoQuant analyst, when traders unwind leveraged positions, systemic risk decreases.
Bitcoin: Price and OI change seven days | Source: CryptoQuant
Historically, this signals a healthier market structure, leading to recovery. OI declines of 8% to 19% have preceded major rebounds, with giants like JPMorgan viewing such cleanups as bullish indicators.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
