DeFi total value locked (TVL) remained steady at $165 billion on April 18, 2025, despite China’s ongoing debate over disposing of its $1.4 billion crypto hoard seized from criminal activities, as reported by Reuters. Local governments are exploring licensed offshore exchanges for sales, a move that could flood the market with Bitcoin and altcoins, potentially depressing DeFi liquidity. Proponents argue this could democratize access to seized assets, but the lack of clear regulation raises concerns about market manipulation and the integrity of decentralized platforms.
Critics on social platforms suggest China’s disposal might benefit state-backed entities more than the broader crypto ecosystem, questioning the transparency of the process. If executed poorly, this could trigger a sell-off, impacting stablecoin pegs and cross-chain bridges like Wormhole, which recently saw $1 billion in transfers. The DeFi community watches closely, as this could either stabilize or destabilize the sector, depending on how global markets react to China’s next steps.