Ethereum News Today: DeFi TVL Hits 3-Year High of $153B as Ethereum Soars 60% and Yield Farming Booms

The decentralized finance (DeFi) market has surged to a three-year high, with total value locked (TVL) reaching $153 billion as of late July 2025, driven by Ethereum’s price rally and growing interest in yield farming strategies. This milestone surpasses the sector’s previous peak in May 2022, which preceded the Terra collapse, and marks a significant rebound in DeFi activity across multiple blockchain ecosystems [1]. Ethereum remains the dominant force, holding 59.5% of TVL, with platforms like Lido and Aave each securing between $32 billion and $34 billion in locked assets [2].

Ethereum’s price surged 60% in a month, climbing from $2,423 to $3,887, fueled by institutional investments and increased adoption of staking mechanisms. Investors now favor active yield generation over passive crypto holdings, with staking protocols offering annual returns of 1.5% to 4%. However, more aggressive strategies, such as looping USDC and sUSDC between protocols like Euler and Spark on Unichain, have attracted attention for their high-yield potential. These methods, involving stablecoin arbitrage and cross-chain incentives, can yield up to 25% annualized returns, though their duration remains uncertain [2].

Cross-chain activity is amplifying growth, with platforms like Solana and Sui gaining traction by offering optimized smart contracts and faster transactions. This diversification reflects broader market trends toward interoperability, as investors allocate capital across blockchains to maximize efficiency. For instance, Binance’s RWUSD stablecoin, which provides up to 4.2% annual percentage return (APR) tied to tokenized U.S. Treasury assets, underscores the blurring lines between traditional finance and DeFi [3].

The current boom differs from previous cycles, such as the 2020 speculative frenzy, by emphasizing practical use cases like tokenized real-world assets (RWAs) and institutional-grade staking solutions. Innovations from projects like Hyperliquid and Centrifuge highlight a shift toward scalable, utility-driven models. However, competition is intensifying, with Solana’s low-cost transactions and Sui’s modular architecture challenging Ethereum’s dominance. Cross-chain bridges and interoperability protocols are emerging as critical infrastructure to facilitate seamless capital movement, though security and regulatory concerns persist [1].

While Ethereum’s market share remains robust, the $153 billion TVL milestone also reflects cautious optimism. Investors are drawn to high-yield opportunities but remain wary of smart contract risks and market volatility. Platforms prioritizing transparency, auditability, and user education are likely to build long-term trust. As the DeFi landscape matures, collaboration between protocols, regulators, and traditional financial institutions will shape its trajectory in 2026 and beyond [2].

Source:

[1] [DeFi Sector TVL Hits 3-Year High of $153B as Investors Rush ...] [https://finance.yahoo.com/news/defi-sector-tvl-hits-3-133613061.html]

[2] [DeFi Market Hits $153B as Ethereum and Yield Farming ...] [https://www.cryptotimes.io/2025/07/29/defi-market-hits-153b-as-ethereum-and-yield-farming-boom/]

[3] [Binance launches RWUSD yield bearing stablecoin-like product ...] [https://cryptorank.io/news/tag/defi]