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

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

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

Dogecoin’s price follows Defi slump

As panic gripped the market, widespread crypto sell-offs and bearish sentiment dominated investor behavior. Dogecoin was no exception. A report from U.Today highlighted a large transfer involving 300 DOGE, interpreted as a possible sell-off maneuver.

According to CoinMarketCap, Dogecoin’s price as of press time had dropped 23.78% over the last month, falling to approximately $0.15, making it one of the day’s biggest losers.

The TVL drop was led by SoSo Value Indexes, a Dogecoin-focused DeFi index, which saw a 26.37% monthly decline. This was followed by BoringDAO and Thorchain, which recorded 24.04% and 20.16% TVL declines 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, indicating 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 heightened uncertainty across the market.