The decentralized finance (DeFi) landscape is experiencing a significant resurgence as the total value locked (TVL) in the ecosystem has soared by 41% in the third quarter of 2025, surpassing the $160 billion mark for the first time since May 2022. This surge is largely attributed to the robust performances of leading platforms Ethereum and Solana, which have emerged as crucial indicators of DeFi activity.
Ethereum’s TVL has witnessed a remarkable 50% increase, climbing from $54 billion in July to $96.5 billion today. Similarly, Solana’s TVL has risen by approximately 30%, up from $10 billion to $13 billion during the same timeframe, according to data from DeFiLlama. The surge in TVL reflects a revitalization in various DeFi activities such as lending, borrowing, and trading on decentralized exchanges (DEXs).
The renewed investor interest in DeFi is attributed in part to recent regulatory progress in the United States. The U.S. House of Representatives approved a series of important measures, including the CLARITY Act, the Anti-CBDC Surveillance State Act, and the GENIUS Act, which focuses on stablecoins. The GENIUS Act was signed into law by President Donald Trump on July 18, further clarifying the regulatory landscape for digital assets.
Examining specific protocols reveals impressive growth among key players in the DeFi space. Aave, the largest lending protocol, has seen its TVL grow nearly 58% to over $41 billion. Liquid staking platform Lido has achieved a staggering 77% increase, bringing its TVL close to $39 billion. EigenLayer, a leading restaking protocol, has also reported significant growth, climbing over 66% to more than $20 billion in TVL, largely bolstered by Ethereum’s price rally.
Industry experts suggest that the success of these platforms lies in their responsible approach to decentralized finance. Mike Maloney, CEO and Founder of Incyt, noted that Aave, EigenLayer, and Lido have captured a substantial share of the market due to their established reputations and reliable offerings.
The bullish sentiment is further reinforced by the price movements of leading cryptocurrencies. Ethereum reached a new all-time high of $4,904 on August 24, marking an 82% increase since the start of July. Likewise, Bitcoin hit a historic peak of $124,128 on August 14, up 18% during the same period.
Doug Colkitt, an initial contributor to Fogo, explained that the growth in DeFi TVL can be attributed to two major factors: rising cryptocurrency prices and the influx of yield-seeking capital back into on-chain activities. He elaborated that when major cryptocurrencies like Bitcoin and Ethereum experience price rallies, the collateral values surge, making it appear as though every protocol’s TVL is on an upward trajectory. However, Colkitt emphasized that this cycle is distinct from the past, highlighting the presence of enduring projects such as real-world assets (RWAs), liquid staking tokens (LSTs), and perpetual contracts, which are drawing sustainable capital into DeFi.
The recent increases in TVL build on the strong momentum from the previous quarter, when DeFi TVL rose from $86 billion in April to over $126 billion by mid-July, marking an impressive increase exceeding 46% in just three months. As the DeFi ecosystem continues to evolve, the current trajectory indicates a significant and possibly structural shift in the market, underscoring the sector’s resilience and potential for future growth.
