DeFi total value locked (TVL) slipped to $164 billion on April 19, 2025, a 0.6% decline, as thousands protested Trump’s crypto policies across the U.S., per Reuters. The unrest follows his National Bitcoin Reserve proposal, raising fears of centralized control that could disrupt decentralized finance protocols. China’s ongoing debate over its $1.4 billion crypto hoard, reported earlier, adds pressure, with potential sales via offshore exchanges threatening liquidity, though no official action has been confirmed.
Critics argue that the dip reflects investor caution, not just market manipulation, as regulatory uncertainty from Trump’s moves and U.S. Justice Department shifts (e.g., disbanding the crypto enforcement team on April 8) erode trust. Social sentiment suggests a wait-and-see approach, with some on X debating whether DeFi can adapt to stricter oversight or if this signals a long-term decline. The sector’s resilience will depend on how these geopolitical and policy dynamics unfold in the coming weeks.