Regulations

Story: Andre Cronje Says DeFi Is Dead in Its Old Form as TVL Craters to $75 Billion

By Steven Anderson

1 / 15

TVL Collapse Tells the Story. Total value locked across DeFi protocols fell from $167 billion in October 2025 to $75 billion…

2 / 15

ECB Research Backs Cronje's Governance Fears. Cronje isn't alone in pointing this out. The European Central Bank published a working paper in…

3 / 15

Sonic Chain and What Cronje Is Building Instead. Despite all the criticism, Cronje is still building.

4 / 15

Andre Cronje is blunt about it. Most DeFi protocols, he says, aren't really DeFi anymore — they've become something else entirely, something he calls "onchain finance.

5 / 15

Cronje, founder of Flying Tulip and the Fantom Network, made the remarks during a recent appearance on the Chain Reaction X Spaces show.

6 / 15

Total value locked across DeFi protocols fell from $167 billion in October 2025 to $75 billion currently, per DefiLlama. That's a brutal drop.

7 / 15

And the trust problem is structural, not just cyclical. Cronje's argument is that protocols started making pragmatic concessions — adding protective layers, giving developers…

8 / 15

He's not saying every project sold out. He acknowledged that some protocols still operate without intermediaries and stay true to the original principles.

9 / 15

Cronje isn't alone in pointing this out. The European Central Bank published a working paper in March that looked hard at several major decentralized autonomous organizations,…

10 / 15

See also: CoinFellos Fello 2 AI Agent Returns 100% of Swap Fees to Users on Monad

11 / 15

That's a real regulatory problem, not a theoretical one. If regulators decide that governance token concentration disqualifies a protocol from decentralized status, the legal and…

12 / 15

So Cronje's critique isn't just philosophical. It's got regulatory teeth now.

13 / 15

Despite all the criticism, Cronje is still building. His current project, the Sonic blockchain, claims to be the fastest Ethereum Virtual Machine chain running — testnet finality…

14 / 15

His track record is hard to dismiss. Yearn.finance, the Keep3r Network, Fantom — Cronje built things that actually got used, at scale, by real people.

15 / 15

See also: Wintermute Bets $1 Billion on AI Trading as TradFi Push Targets 50% of Revenue

The Currency Analytics

Want the full story?