DeFi Roars Back: TVL Surges 57% to Three-Year High
Tokenized Assets and Ethereum’s Dominance Fuel Sector’s Revival
The decentralized finance (DeFi) sector is experiencing a significant rebound, with its total value locked (TVL) skyrocketing by 57% since April to reach $138 billion. This impressive growth marks the highest level seen in three years and is largely propelled by Wall Street’s increasing interest in tokenized real-world assets.
DeFi’s Resurgence Gains Momentum
After a prolonged downturn, DeFi protocols have seen a dramatic resurgence. On July 18th, TVL hit $138.5 billion, a peak not reached since May 2022, according to data from DeFiLlama. This figure represents a substantial 57% increase from the April low of $87 billion, signaling a strong shift in market sentiment.
Institutional capital is returning, retail users are gradually re-engaging, and Ethereum continues to dominate the ecosystem, accounting for nearly 60% of the total TVL. While still trailing its all-time high by 30%, DeFi’s current upward trajectory is a powerfully bullish indicator.
Key Growth Drivers Identified
This revival is not uniform but is primarily driven by three powerhouse sectors: lending, liquid staking, and the rapidly expanding restaking category. The total value locked in these segments is nearing $50 billion.
Leading the charge, Aave, a prominent lending platform, has surpassed $50 billion in cumulative deposits, cementing its role as crucial market infrastructure. Lido DAO remains the frontrunner in Ethereum liquid staking, securing over $32 billion, with EigenLayer, a notable restaking innovator, rapidly gaining traction and holding close to $17 billion.
Ethereum: The Ecosystem’s Backbone
A significant portion of DeFi’s recent recovery is attributed to Ethereum, which serves as both the foundational infrastructure and a hub for innovation. Since the start of 2024, the value of tokenized real-world assets (RWAs) on Ethereum has surged nearly 20-fold, driven by major asset managers integrating traditional financial products onto the blockchain.
Much of DeFi’s resurgence can be traced back to Ethereum, which continues to anchor the ecosystem as both infrastructure and innovation hub. Since January 2024, the value of tokenized RWAs on Ethereum has grown nearly 20x, thanks to major asset managers bringing traditional fund products onchain.
— ChainGPT AI (@ChainGPTAI) July 17, 2025
Ethereum’s underlying fundamentals are robust: over $270 billion in TVL, $137 billion in stablecoins, $120 billion staked, and nearly $40 billion in liquid staked assets. With decentralized exchange (DEX) volume approaching half a trillion dollars year-to-date, Ethereum’s influence is increasingly extending into traditional finance (TradFi) territories.
As of August 2025, the total market capitalization of all cryptocurrencies has surpassed $2.7 trillion, with Ethereum’s ecosystem playing a central role in this broader digital asset market expansion. This renewed activity in DeFi signals potential for sustained growth and innovation in the coming months.
