Data from DeFiLlama shows that on May 28, the daily trading volume of decentralized exchanges dropped to $6.047 billion, a significant decrease from approximately $22 billion at the end of January 2026. Foreign media believe this reflects a cooling of on-chain trading activity, but is not enough to conclude that DeFi is coming to an end.
Trading volume fell from its peak
The report noted that DEX trading volume peaked at $159 billion in October 2025. Subsequently, as the market declined in October 2025, the data continued to weaken. On a weekly basis, current DEX weekly trading volume is approximately $40 billion, about 76% lower than the previous high.
These kinds of changes typically correspond to a decline in risk appetite. Some funds will shift to stablecoins, and institutional exposure to altcoins will also shrink. Meanwhile, the total market capitalization of the crypto market has fallen by more than 3% in the past 24 hours, further amplifying market concerns about a slowdown in on-chain activity.
Head-to-head agreements still account for the majority.
Despite the overall decline in trading volume, leading DEXs maintained their dominance. According to data at the time of the report's publication, Uniswap's daily trading volume was approximately $1.428 billion, PancakeSwap's was $805.97 million, and Aerodrome Finance's was $798.11 million.
This means the market isn't completely stagnant; rather, trading is more concentrated on a few leading protocols. For DeFi, decreased activity and a failed sector are not the same thing. The drop in trading volume indicates a reduction in short-term speculative trading, with funds flowing back to platforms with higher liquidity.
Foreign media say it's more like a periodic cooling trend.
Foreign media believe that DeFi has experienced multiple rounds of expansion and contraction in the past. The yield farming in 2020, the DeFi Summer and NFTs in 2021, the liquidity staking in 2023, and the active period driven by meme coins and the Base ecosystem from 2024 to 2025 all illustrate that this field often switches between different narratives.
The report also mentioned that DEX trading volume fell to its lowest level since 2024 in April 2026, indicating that market concerns about DeFi have not disappeared. However, based on current data, what appears to be the current situation is more like deleveraging and a retreat of speculation after a period of high volatility, rather than the end of the DeFi sector.
