Decentralized Finance (DeFi), often compared to Traditional Finance (TradFi), has grown into a massive and exponentially expanding sector within Web3. Its mission aligns closely with the crypto mantra of "banking the unbanked." The promise of global financial services without banks is a noble goal—one that underpins much of Web3's appeal. This article revisits DeFi's evolution over the past year from today's perspective.

• Total Value Locked (TVL) Hits $94.6B: While DeFi's TVL is substantial, it represents just 3.3% of the total crypto market cap (~$2.8T), indicating significant growth potential. TVL has grown ~1.5x from $65.4B a year ago but remains proportionally stable (previously 3.5%).

• Aave and Lido Dominate with $35.6B TVL: Together, they account for over 37% of DeFi TVL, primarily via staked ETH. Aave has overtaken Lido as the leader.

• Stablecoin Market Cap at $236B: Stablecoins now make up 8.3% of the crypto market—more than double DeFi’s share—demonstrating strong product-market fit.

• Ethereum remains the leader with 52% of DeFi TVL (down from 58.3% last year), hosting 1,320+ protocols.

• Solana has surged to second place (8% TVL), though still 6x smaller than Ethereum. It boasts 4.3M active addresses vs. Ethereum’s 442K.

• Bitcoin now has 58 DeFi protocols (up from 12) and holds 4% of DeFi TVL (~$3.8B), despite not being designed for smart contracts.

• Tron, once second, has fallen to fourth behind Solana and BSC.

• Aave dominates lending across EVM chains (Ethereum, Sonic, Avalanche, Arbitrum), while Morpho leads on Base.

• Lido commands 43% of liquid staking TVL, followed by Eigen Layer (restaking) and Stargate (cross-chain).

• DEXs like Uniswap, Curve, and PancakeSwap (each on 9+ EVM chains) generate the highest fees ($5.9M in 24hr).

1. Lending ($42B TVL): Aave holds 44% share.

2. Cross-Chain Bridges ($37B TVL): WBTC and Binance Bitcoin dominate.

3. Liquid Staking ($37B TVL): Lido leads, though its margin over lending/bridges has narrowed.

4. DEXs ($18B TVL): Uniswap tops fees, with 1,600+ protocols competing.

• Ethereum Foundation’s treasury has halved in value over the past year.

• Mantle holds the largest treasury but mostly in its native token.

• Projects like Aave, ENS, and Lido also lead in treasury size but are heavily exposed to their own tokens’ volatility.

• Lido’s stETH remains the yield favorite for ETH holders.

• JitoSOL offers the highest yield among top assets (7.75% for staked SOL).

• Sky Lending’s SUSDS is the low-risk stablecoin choice (4.5% yield, $2.5B TVL).

• Stablecoins: Tether and Circle lead, earning $5.8B and $1.6B annually, respectively.

• Ethereum Gas: Fees have plummeted, falling out of the top 15 in the last 30 days.

• Solana: Jito, Raydium, and Pump.fun saw explosive fee growth, fueled by memecoin activity.

• Bitcoin: Fees dropped 50% YoY, sliding to 14th place.

• Market Cap: $235B (up from $136B last year).

• Dominance: USDT (62%) and USDC (26%) hold 88% combined.

• Risers: Ethena’s USDe (now #3 with 2% share) and Sky’s USDS (displacing DAI in some segments).

• TradFi Entry: BlackRock’s BUIDL fund signals institutional interest.

• DeFi Funding: $113B raised across 6,129 rounds, peaking in 2021–2022. Recent monthly totals exceed $3.5B.

• Notable Failures: FTX ($900M raised) and Celsius ($750M) top the list of high-profile collapses.

• Hacks: $11.2B lost, with cross-chain bridges accounting for 25%. The 2025 ByBit hack ($1.4B) and 2022 Ronin attack ($624M) were orchestrated by North Korea’s Lazarus Group.

DeFi is still Ethereum-centric, but Solana’s rapid growth and Bitcoin’s unexpected DeFi strides are reshaping the landscape. Tron, while lagging, remains a stablecoin hub. With Ethereum’s L2s expanding, Solana gaining ground, and even Bitcoin joining the fray, DeFi’s next phase promises deeper diversification—and fiercer competition.

Data sources: DeFiLlama, on-chain analytics

Decentralized Finance (DeFi), often compared to Traditional Finance (TradFi), has grown into a massive and exponentially expanding sector within Web3. Its mission aligns closely with the crypto mantra of "banking the unbanked." The promise of global financial services without banks is a noble goal—one that underpins much of Web3's appeal. This article revisits DeFi's evolution over the past year from today's perspective.

• Total Value Locked (TVL) Hits $94.6B: While DeFi's TVL is substantial, it represents just 3.3% of the total crypto market cap (~$2.8T), indicating significant growth potential. TVL has grown ~1.5x from $65.4B a year ago but remains proportionally stable (previously 3.5%).

• Aave and Lido Dominate with $35.6B TVL: Together, they account for over 37% of DeFi TVL, primarily via staked ETH. Aave has overtaken Lido as the leader.

• Stablecoin Market Cap at $236B: Stablecoins now make up 8.3% of the crypto market—more than double DeFi’s share—demonstrating strong product-market fit.

• Ethereum remains the leader with 52% of DeFi TVL (down from 58.3% last year), hosting 1,320+ protocols.

• Solana has surged to second place (8% TVL), though still 6x smaller than Ethereum. It boasts 4.3M active addresses vs. Ethereum’s 442K.

• Bitcoin now has 58 DeFi protocols (up from 12) and holds 4% of DeFi TVL (~$3.8B), despite not being designed for smart contracts.

• Tron, once second, has fallen to fourth behind Solana and BSC.

• Aave dominates lending across EVM chains (Ethereum, Sonic, Avalanche, Arbitrum), while Morpho leads on Base.

• Lido commands 43% of liquid staking TVL, followed by Eigen Layer (restaking) and Stargate (cross-chain).

• DEXs like Uniswap, Curve, and PancakeSwap (each on 9+ EVM chains) generate the highest fees ($5.9M in 24hr).

1. Lending ($42B TVL): Aave holds 44% share.

2. Cross-Chain Bridges ($37B TVL): WBTC and Binance Bitcoin dominate.

3. Liquid Staking ($37B TVL): Lido leads, though its margin over lending/bridges has narrowed.

4. DEXs ($18B TVL): Uniswap tops fees, with 1,600+ protocols competing.

• Ethereum Foundation’s treasury has halved in value over the past year.

• Mantle holds the largest treasury but mostly in its native token.

• Projects like Aave, ENS, and Lido also lead in treasury size but are heavily exposed to their own tokens’ volatility.

• Lido’s stETH remains the yield favorite for ETH holders.

• JitoSOL offers the highest yield among top assets (7.75% for staked SOL).

• Sky Lending’s SUSDS is the low-risk stablecoin choice (4.5% yield, $2.5B TVL).

• Stablecoins: Tether and Circle lead, earning $5.8B and $1.6B annually, respectively.

• Ethereum Gas: Fees have plummeted, falling out of the top 15 in the last 30 days.

• Solana: Jito, Raydium, and Pump.fun saw explosive fee growth, fueled by memecoin activity.

• Bitcoin: Fees dropped 50% YoY, sliding to 14th place.

• Market Cap: $235B (up from $136B last year).

• Dominance: USDT (62%) and USDC (26%) hold 88% combined.

• Risers: Ethena’s USDe (now #3 with 2% share) and Sky’s USDS (displacing DAI in some segments).

• TradFi Entry: BlackRock’s BUIDL fund signals institutional interest.

• DeFi Funding: $113B raised across 6,129 rounds, peaking in 2021–2022. Recent monthly totals exceed $3.5B.

• Notable Failures: FTX ($900M raised) and Celsius ($750M) top the list of high-profile collapses.

• Hacks: $11.2B lost, with cross-chain bridges accounting for 25%. The 2025 ByBit hack ($1.4B) and 2022 Ronin attack ($624M) were orchestrated by North Korea’s Lazarus Group.

DeFi is still Ethereum-centric, but Solana’s rapid growth and Bitcoin’s unexpected DeFi strides are reshaping the landscape. Tron, while lagging, remains a stablecoin hub. With Ethereum’s L2s expanding, Solana gaining ground, and even Bitcoin joining the fray, DeFi’s next phase promises deeper diversification—and fiercer competition.

Data sources: DeFiLlama, on-chain analytics