# Divergence in DeFi Markets: TVL Rises as DEX Volume Declines
The decentralized finance (DeFi) market is witnessing a divergence between total value locked (TVL) and decentralized exchange (DEX) trading volumes. According to data from DeFiLlama on the 17th, TVL has remained relatively stable, buoyed by the growth of certain chains, while DEX trading volumes have decreased, indicating a reduction in short-term trading activities among investors.
## TVL Increases as Investors Prefer Long-term Holdings
TVL has remained stable thanks to the strength of chains like Solana and Sui. Solana recorded a TVL of $9.497 billion, marking a 5.50% increase from the previous week. Similarly, Sui saw its TVL rise by 6.72% to $1.957 billion. This suggests that investors are seeking long-term returns by depositing assets into liquidity pools or staking. Despite a slight decrease of 0.96% from the previous week, Ethereum retained its top position with a TVL of $66.74 billion, indicating overall stability.
## DEX Trading Volumes Decline as Short-term Trades Decrease
In contrast to the stable TVL, DEX trading volumes have seen a weekly decline across most chains. Solana, the leading chain in this category, maintained a weekly trading volume of $27.026 billion but experienced a 9.55% drop from the previous week. Ethereum, which came in second, recorded a trading volume of $15.256 billion, representing a 9.11% decrease.
The most significant decline was observed in Binance Smart Chain (BSC), where trading volume fell by 19.00% to $7.442 billion. This trend indicates that investors are focusing more on asset deposits rather than short-term trading activities.
Conversely, Thorchain emerged as an outlier among major chains, with its weekly trading volume increasing by 39.37% to $1.077 billion. This indicates the potential for trading activity recovery within relatively smaller networks.
## DeFi Investors Focus on Stability Over Trading
The decrease in DEX trading volumes and the rise in TVL reflect a strategic shift among investors. In a highly volatile market, investors are leaning towards long-term, stable income-generating activities such as staking, lending, and providing liquidity, rather than engaging in short-term trades.
This trend is evident from the strong performance of individual chains like Solana and Sui, which have seen TVL increases, and Thorchain, which has experienced a rise in trading volumes. The heightened activity on Thorchain suggests that market participants are eyeing opportunities within specific ecosystems.
Such contrasting trends in the DeFi market reflect typical investor psychology during adjustment phases. As market volatility decreases and stability is restored, trading volumes are likely to rise again. Chains that show significant performance in TVL and trading volumes are poised to be crucial drivers of DeFi growth in the future.
