DeFi TVL Surges to $153B as PayPal Launches Crypto Payments and FIS Integrates USDC

The decentralized finance (DeFi) sector has seen a significant rebound, with total value locked (TVL) rising to $153 billion, the highest level since May 2022. This surge reflects a renewed interest from investors seeking yield in an environment of low traditional returns. Ethereum dominates the TVL landscape, accounting for nearly 60% of the total value, driven by staking activity and institutional participation [1]. Protocols such as Lido and Aave collectively hold over $65 billion in assets. Beyond staking and lending, users are exploring advanced strategies like restaking and arbitrage between platforms such as Euler and Spark, generating up to 25% annualized returns on stablecoins like USDC. Meanwhile, Solana’s TVL jumped 23% to $12 billion in July, with Avalanche and Sui also experiencing notable growth of 33% and 39%, respectively. Bitcoin’s DeFi footprint, though still modest, grew by 9% during the same period.

PayPal has launched a new feature called “Pay with Crypto,” enabling U.S. merchants to accept over 100 cryptocurrencies at checkout. The service integrates with wallets such as MetaMask and Coinbase, allowing customers to pay in assets like bitcoin, ether, XRP, and USDC. Merchants receive funds in U.S. dollars, settled near instantly, while PayPal charges a 0.99% fee—approximately one-tenth of the typical international credit card transaction cost [1]. A hypothetical scenario illustrates the utility: a Guatemalan shopper purchasing from an Oklahoma-based seller can bypass cross-border payment delays, with the merchant earning a 4% yield by holding balances in PYUSD, PayPal’s dollar-backed stablecoin. This move expands PayPal’s broader crypto strategy, which includes its own stablecoin and partnerships to promote global stablecoin adoption.

Fidelity National Information Services (FIS) is collaborating with Circle to integrate USDC into U.S. banking systems, allowing banks to offer stablecoin-based transfers domestically and internationally. The service will connect Circle’s dollar-backed stablecoin to FIS’s money movement hub, facilitating real-time payments across multiple rails. The partnership is expected to launch before the end of the year, aligning with new U.S. stablecoin legislation and mirroring similar efforts by FIS’s competitor, Fiserv [1].

The DeFi TVL surge underscores a shift toward decentralized alternatives as investors prioritize yield generation amid stagnant traditional markets. PayPal’s integration of over 100 cryptocurrencies signals a broader acceptance of digital assets in mainstream commerce, particularly for cross-border transactions where cost efficiency is critical. FIS’s move to support USDC reflects growing institutional confidence in stablecoins, which now serve as a bridge between traditional finance and decentralized ecosystems. Together, these developments highlight a maturing crypto landscape where innovation in payment infrastructure and DeFi protocols is reshaping financial services.

[1] Source: [1] The Crypto Roundup: 29 July 2025 | CryptoCompare.com (https://www.cryptocompare.com/email-updates/daily/2025/jul/29/)