Ethereum Takes the Lead in 2025: DeFi Value Surges to $99 Billion, Stablecoin Transactions Reach $18.8 Trillion
Ethereum demonstrates unparalleled growth in decentralized finance, with DeFi's total locked value soaring while stablecoin activity remains robust in 2025.
Ethereum has shown remarkable growth in the decentralized finance (DeFi) sector throughout 2025. It reported a total value locked (TVL) exceeding $99 billion, significantly outpacing its closest competitors in the Layer 1 category. This impressive growth indicates a robust adoption of the Ethereum network within the decentralized finance landscape.
Increased Activity in DeFi and Stablecoins
According to a New Year’s post shared via X, Ethereum’s DeFi TVL dwarfs that of the second-largest Layer 1 network by more than nine times. Furthermore, stablecoin trading across the network peaked at an astounding $18.8 trillion during the year.
These gains were spurred by lower transaction costs, which hit five-year lows on the Ethereum Layer 1 network, while many Layer 2 solutions operated at or below $0.01 per transaction. This reduction in fees has made the network accessible for payments and other financial activities without the necessity of holding Ethereum (ETH) for transaction costs.
Moreover, prominent platforms such as Robinhood, Gemini, and Kraken integrated tokenized stocks into the Ethereum ecosystem, providing users broader access to U.S. equities and announcing plans to launch their own Layer 2 solutions.
Advancements and Ecosystem Growth
In addition to the substantial growth within the DeFi space, Ethereum’s institutional and technical networks also flourished. By the close of the year, ETH assets in exchange-traded funds and strategic reserves surpassed $35 billion. Moreover, the functionality of smart contracts was leveraged by institutions, allowing them to raise over $12 billion in real-world assets.
Ethereum’s rollup-focused strategy led to average transaction speeds of 5,600 transactions per second among Layer 2 networks. The introduction of the Fusaka upgrade in December further bolstered capacity and efficiency, raising Layer 1’s gas limit by 33%.
Celebrating ten years in operation in July 2025, Ethereum recorded over 88 million smart contracts deployed and achieved a staggering 1.74 million daily transactions, with developer activity at an all-time high.
