I just reviewed the numbers and it's interesting what's happening in DeFi while the entire market is crashing. Bitcoin and Ether are plummeting, but yield farmers are not rushing to exit. The TVL dropped from $120 billion to $105 billion, a 12% decline, but that's much less than you would expect considering BTC is at $74.24K (+4% in 7 days) and ETH has fallen much more in the short term. The signal here in the form of a diamond is that users are not withdrawing out of panic; it's purely a price effect.

What catches my attention the most is that the Ether deployed in DeFi continues to grow. It went from 22.6 million ETH at the beginning of the year to 25.3 million now, with 1.6 million added just in the last week. That means while others are rushing to sell, those who understand yield farming are locking more assets, some even doing delta-neutral strategies where they stake ETH and hedge in derivatives to generate returns without directional exposure.

Additionally, the on-chain liquidation risk is under control. Only $53 million in positions near danger, compared to the $340 million that were about to explode a year ago when something similar happened. The Compound protocol only has real risk if ETH falls below $1,800. This shows that the DeFi sector is much more mature than before, better collateralized, less fragile. In 2022, everything collapsed together, but this time it seems different.