Over the past week, DeFi markets have shown renewed signs of activity — liquidity continues to rotate between Layer 1 and Layer 2 ecosystems, while Real-World Asset (RWA) tokenization keeps gaining traction as investors seek stability and predictable yields.

Protocols like Uniswap, Curve, and PancakeSwap remain dominant in total value locked (TVL), with a combined figure exceeding $12 billion.However, the real story lies in capital rotation: Curve and Balancer have seen fee growth despite flat TVL, indicating more efficient liquidity use and higher transaction turnover.This suggests that traders are active even without massive inflows — a sign of market resilience.

While DeFi seeks efficiency, the RWA sector continues expanding its foundation.According to RWA.xyz, total tokenized value surpassed $21 billion, with Real-Estate projects like RealT and Tangible leading the charge.Ethereum remains the primary network for issuance, but Polygon is quickly catching up, signaling broader participation and lower entry barriers for investors.

Capital is not leaving on-chain finance — it’s diversifying.DeFi liquidity still powers yield generation and market depth, while RWA protocols bring tangible, yield-bearing instruments on-chain.Together, they form the early architecture of a hybrid financial system — one that merges crypto’s efficiency with real-world credibility.

Key takeaway:

The future of on-chain finance won’t be purely DeFi or purely traditional — it will live at their intersection.Understanding where liquidity moves, and how tokenized assets grow, is now essential for every financial analyst exploring the blockchain economy.

Over the past week, DeFi markets have shown renewed signs of activity — liquidity continues to rotate between Layer 1 and Layer 2 ecosystems, while Real-World Asset (RWA) tokenization keeps gaining traction as investors seek stability and predictable yields.

Protocols like Uniswap, Curve, and PancakeSwap remain dominant in total value locked (TVL), with a combined figure exceeding $12 billion.However, the real story lies in capital rotation: Curve and Balancer have seen fee growth despite flat TVL, indicating more efficient liquidity use and higher transaction turnover.This suggests that traders are active even without massive inflows — a sign of market resilience.

While DeFi seeks efficiency, the RWA sector continues expanding its foundation.According to RWA.xyz, total tokenized value surpassed $21 billion, with Real-Estate projects like RealT and Tangible leading the charge.Ethereum remains the primary network for issuance, but Polygon is quickly catching up, signaling broader participation and lower entry barriers for investors.

Capital is not leaving on-chain finance — it’s diversifying.DeFi liquidity still powers yield generation and market depth, while RWA protocols bring tangible, yield-bearing instruments on-chain.Together, they form the early architecture of a hybrid financial system — one that merges crypto’s efficiency with real-world credibility.

Key takeaway:

The future of on-chain finance won’t be purely DeFi or purely traditional — it will live at their intersection.Understanding where liquidity moves, and how tokenized assets grow, is now essential for every financial analyst exploring the blockchain economy.