On-chain Activity Falls Sharply in November — Users, TVL, Fees and DEX Volumes Drop
On-chain metrics contracted across the crypto ecosystem in November 2025, according to Presto Research. Active users, total value locked (TVL), protocol fees and DEX volumes all fell month-on-month. Tron, BNB Chain and Solana again led active-user counts, with Tron ranking first for the seventh consecutive month. Dollar-denominated TVL declined broadly as token price pressure hit locked assets — Bera Chain’s TVL more than halved, while Sui and Sonic saw >40% drops and Avalanche fell nearly 30%. Ethereum saw a >$1.5 billion rise in stablecoin balances and led bridged capital inflows (~$200m), but fee generation on high-fee chains (Solana, Ethereum, Base) plunged. Uniswap and Curve recorded the largest DEX volume declines (~$500m and ~$300m respectively). The pullback coincided with volatile markets: Bitcoin briefly dipped below $84k then rebounded toward $92k, with analysts linking part of the rebound to heavy futures buying after Vanguard approved trading for several spot crypto ETFs. Market observers noted rising institutional interest but weak retail/DeFi participation — Arca CIO Jeff Dorman described the sell-off as unusually odd, attributing it to drained crypto-native traders and slow fresh capital inflows. For traders, the report signals reduced on-chain liquidity and activity, larger price sensitivity to token flows, and potential short-term volatility as institutional demand competes with softer retail engagement.
Bearish
The report documents broad declines in core on-chain activity — active users, TVL, protocol fees and DEX volumes — which directly reduce on-chain liquidity and trading depth. Key fee- and volume-generating chains (Solana, Ethereum, Base) showed steep fee drops, and major DEXes (Uniswap, Curve) lost hundreds of millions in monthly volume. These are signs of diminished retail and DeFi engagement; even with pockets of strength (Ethereum stablecoin balances and bridged capital), reduced transaction activity typically increases slippage, widens spreads and magnifies price moves when large orders hit the market. Historical parallels: prior periods when TVL and DEX volumes contracted (e.g., post-2021/2022 drawdowns) correlated with increased volatility and risk-off behavior among altcoins and DeFi tokens. Short-term impact: likely higher volatility, reduced liquidity for altcoins and DeFi tokens, and potential downward pressure as selling encounters thinner orderbooks. Institutional flows (ETF-related futures buying) can support BTC prices, but may not offset broad retail/DeFi weakness across altcoins. Long-term impact: if retail and protocol activity remain depressed, growth-dependent sectors (DeFi, layer-1s with low utility) could underperform until sustained on-chain demand or fresh retail capital returns. Traders should reduce position sizes in low-liquidity tokens, monitor fee/volume metrics and stablecoin flows, and favor liquid, ETF-linked instruments for shorter timeframes.