The total value locked (TVL) in Dogecoin (DOGE)-based DeFi protocols fell to its lowest level since 2023 on Monday, March 11, according to DeFi analytics platform DeFiLlama.

The data showed that DOGE’s TVL dropped to $2.72 million, suggesting a significant bearish shift in investor sentiment and less liquidity across Dogecoin’s decentralized finance ecosystem.

This decline comes amid the broader market downturn sparked by the so-called "Black Monday Sell-Off," which saw the prices of leading cryptocurrencies, including top memecoins, tumbling across the board.

Dogecoin’s price follows Defi slump

As panic set in, there were reports of large-scale crypto selloffs and bearish sentiment driving market trends. Dogecoin wasn’t immune to this shift. One report from U.Today highlighted a substantial transfer involving 300 DOGE, which was interpreted as a possible sell-off move.

According to CoinMarketCap, Dogecoin’s price had fallen by 23.78% over the last month, reaching around $0.15 at press time, making it one of the biggest losers for the day.

The TVL drop was largely driven by SoSo Value Indexes, a Dogecoin-focused DeFi index, which saw a 26.37% monthly decline in TVL. This was followed by BoringDAO and Thorchain, which recorded 24.04% and 20.16% TVL drops respectively.

Dogecoin wasn’t the only memecoin to suffer from the market correction. Shiba Inu (SHIB) dropped 10.09% over the past 24 hours. Interestingly, Pepe (PEPE) defied the downtrend, posting a 3.49% price gain during the same period.

Despite DOGE’s slumping TVL and price, Coinglass data shows a 68.62% spike in Dogecoin liquidations over the last 24 hours, suggesting that while some are exiting, others may be entering or adjusting positions with high volatility in mind.

Investors remain cautiously optimistic about Dogecoin’s long-term potential, even amid the heightened uncertainty across the market.