DeFi total value locked (TVL) rose slightly to $165 billion on April 20, 2025, a 0.6% increase, as markets grapple with Trump’s tariff policies and speculation about martial law, per Yahoo Finance updates. The uptick suggests resilience amid economic pressures, with decentralized protocols like Aave seeing inflows as investors seek alternatives to traditional finance. However, the looming 125% reciprocal tariffs on Chinese goods, effective since April 5, could disrupt cross-chain liquidity, particularly for stablecoins tied to global trade, raising cautious optimism.
Critics argue this growth might be a short-term reaction to tariff fears, with China’s debated $1.4 billion crypto disposal adding volatility risks. Web sentiment reflects mixed views, with some seeing DeFi as a hedge against centralized instability, while others warn of a potential correction if trade tensions escalate. The sector’s ability to adapt to these macroeconomic shifts will be a key test in the coming days.