Crypto Market Selloff | Major Blockchains Hit Weekly TVL Lows
Edited By
Fatima Zohra
A sweeping crypto selloff from February 2 to 6, 2026, has pushed major blockchains to their lowest total value locked (TVL) levels since tracking began. Bitcoin, Ethereum, Solana, BNB Smart Chain, Tron, and Base are all experiencing significant downturns amid a market-wide risk-off sentiment.
Key Insights on the Selloff
The systemic issues in the crypto market became evident on February 6 when prices tumbled sharply across the board: Bitcoin down 9.9%, Ethereum down 7.8%, and Solana down 13.1%. In dollar terms, TVL fell by 3.3% to 12.6%, with Ethereum suffering the largest absolute drop.
Despite the downturn in asset prices, trading activity saw an uptick. "The trading volume surged mid-week, hinting at continued investor interest even in a dip," one observer noted. On February 5, Bitcoin's trading volume doubled, reaching $3 million in fees per day. Notably, Solana dominated decentralized exchange (DEX) volume with $36 billion while Tron maintained stability through rising stablecoin supply.
Community Reactions and Thoughts
Comments around this event reflect a mix of sentiments. Some people argue that
"Of course TVL will go down in dollar terms.
Real metrics would be to measure the impact in native currency,” suggests a user concerned with the broader implications.
Additionally, a brief summary from the blockchain metrics report reiterated that this moment represents a coordinated downturn, bringing to light the risks within the market.
"This reflects a systemic risk-off event across the crypto ecosystem," a commentator echoed, emphasizing the severity of recent market conditions.
Analyzing The Current Landscape
Trading volume spikes: February saw trading activity increase despite falling prices, indicating engaged participation.
Ethereum's struggling dominance: Many are questioning Ethereum's ability to hold market value as it recorded the most substantial TVL drawdown.
Stability from Tron: Tron’s upward trend in stablecoin usage may position it uniquely against the broader market challenges.
What’s Next for Crypto Investors?
With the market fluctuating, the focus shifts to whether this downturn will prompt further regulatory scrutiny or investor caution going forward. Are investors prepared for potential future shifts? The crypto community remains on alert as the landscape evolves amidst dramatic price movements.
Takeaways
★ Bitcoin saw a 9.9% decline; Ethereum dropped by 7.8%.
● Over a week, trading volumes surged as active participation persisted.
✪ Solana led DEX volume while Tron's stability offered a silver lining.
Stay tuned for ongoing market updates as the situation develops.
Forecasting Market Trends
As the crypto landscape continues to shift, there’s a strong chance investors may face increased regulatory scrutiny in the months ahead. Experts estimate around a 60% likelihood that government agencies will introduce new guidelines aimed at stabilizing the market. This could translate to a broader push for transparency among blockchain projects, further impacting investor confidence. Meanwhile, with trading volumes remaining relatively high despite price drops, we might see a gradual recovery in market sentiment if traders shift towards a more risk-averse approach. Recent patterns suggest that markets tend to bounce back following such downturns, but cautious movements from major players might define the next phase.
A Ripple from the Past
Looking back, the frequent sell-offs in tech stocks during the early 2000s might offer a unique lens on the current crypto situation. Just as the burst of the dot-com bubble revealed hidden risks and forced a reckoning, so too could this crypto selloff lead to a clearer understanding of which blockchains stand the test of time. The resilience of certain companies emerged in the wake of that downturn, ultimately reshaping the technology landscape. Today, this crypto stark comparison paints a picture of potential survival for only the strongest projects as the market sorts out its winners from the losers.