**Crypto Market Loses $400 Billion but Analysts Predict Next DeFi Cycle**
The crypto market has faced significant volatility recently, losing nearly $400 billion in total market capitalization over the past 30 days. Investor sentiment has sharply declined, with market indicators now reflecting levels of fear. However, despite this downturn, analysts suggest that the data points toward an upcoming DeFi expansion rather than a prolonged market slump.
### Foundations for a New DeFi Era
According to a recent report by 10x Research titled *“Is This the First Chapter of the 2026 DeFi Cycle?”*, the crypto market is quietly gearing up for its next major growth phase. While surface-level trends might seem stagnant, on-chain metrics such as user-driven transactions indicate that a new DeFi expansion is on the horizon.
Significant legislative developments are also supporting this outlook. The GENIUS Act has already become law, and the Market Structure bill is expected to follow soon. Meanwhile, Ethereum-based stablecoin issuance has surged by $48 billion since the recent U.S. election. This growth far exceeds Tron’s $15.8 billion increase, which followed years of similar performance between the two platforms.
Despite this influx of capital, prices have yet to reflect the changes. Analysts interpret this silent accumulation as early positioning ahead of the next bull run, not a false start. Historically, such structural buildups have preceded major upswings in decentralized finance (DeFi) activity.
Notably, in Q3 2025, the global DeFi market cap increased by over 40% quarter-over-quarter (QoQ), regaining its dominance within the crypto sector. Furthermore, the total value locked (TVL) across all DeFi protocols currently stands at approximately $135.28 billion—an increase of 40% over the past year.
The 10x Research report emphasizes that on-chain data, especially user-driven transactions, offers clearer insights than short-term price movements. If DeFi truly is entering a new expansion phase, traders should strategically manage their risk to successfully navigate the upcoming cycle.
### Deleveraging Signals a Market Reset
Alongside these trends, the derivatives market is undergoing a notable deleveraging phase. Open Interest (OI) has dropped by 11.32% over the past seven days, according to CryptoQuant analysts. This decline represents traders unwinding leveraged positions, which reduces systemic risk and signals a healthier market structure.
Historically, OI declines ranging from 8% to 19% have preceded significant market recoveries. Major institutions like JPMorgan view such deleveraging events as bullish indicators, suggesting that the market reset could pave the way for renewed growth.
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**Disclaimer:** Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage readers to verify information independently and consult with a professional before making any investment decisions.
https://bitcoinethereumnews.com/crypto/major-but-overlooked-shift-happening-in-crypto-10x-research/