DeFi Liquidity Crisis: $12 Billion Idle as 95% of Capital Remains Unused in Crypto Markets

The decentralized finance sector is facing a significant liquidity challenge with approximately $12 billion in DeFi liquidity currently sitting idle. Recent data reveals that a staggering 95% of available capital across major DeFi protocols remains unused, creating potential market inefficiencies. This liquidity crisis highlights ongoing challenges in capital deployment across platforms like Ethereum (ETH), Uniswap, and Aave, despite growing total value locked metrics in the DeFi ecosystem.