DeFi lending contracts have experienced a significant downturn during the ongoing crypto market correction, with the total value locked (TVL) dropping to $117.9 billion. According to CryptoQuant, stablecoin borrowing on Aave has plummeted by 69%, reaching $1.9 billion by late November 2025, down from $6.2 billion in early August. Meanwhile, centralized platforms like Nexo are witnessing a resurgence as users increasingly opt to borrow against crypto collateral. Evernorth CEO Asheesh Birla forecasts a stronger institutional adoption of DeFi in 2026, spurred by clearer regulatory frameworks and growing enterprise interest in cryptocurrency. This anticipated shift could mark a pivotal moment for the DeFi sector, potentially stabilizing and expanding its market presence.