Happy new month, frens. Last month has been an important reset period for DeFi. TVL is roughly down $35B since early November, but the decline came mostly from price movements. Onchain activity and usage seem more resilient. Lending protocols like Aave continue to hold substantial capital, and DEX volumes remain stable. I'm seeing a continued shift in capital allocation: more emphasis on RWA tokenization. Institutional interest didn't fade either. TradFI players continued exploring onchain finance, which suggests that the long-term narrative is still intact. Overall, I'm cautiously optimistic. The last month removed excessive leverage and forced the market to refocus on real utility. Protocols with strong fundamentals kept growing, while weaker ones naturally slowed down. There's still uncertainty; Sentiment is fragile, and regulatory pressure could affect some segments, but the core metrics look healthier now than they did before the correction. Once the market stabilizes, I expect TVL to recover gradually as institutional flows continue. Fingers crossed.

I'd say this is a clarity moment. Capitals are consolidating in protocols with real onchain activity, sustainable yields, and strong composability. Pay attention to fundamentals.