Ethereum News Today: Etherlink Surges to $82M TVL on Farfadet Upgrade, Scaling to 1,000 TPS at Low Cost

The Tezos EVM blockchain, Etherlink, has activated its sixth major upgrade, Farfadet, following governance approval, marking a significant milestone in a year of transformative growth. The upgrade nearly doubles the network's capacity, enabling over 1,000 native transfers per second at minimal cost.

This development caps off a year where total value locked (TVL) on the platform surged from $1.46M to over $82.73M by November 2025.

Farfadet is the latest in a series of rapid upgrades launched in 2025, including Calypso, Dionysus, and Ebisu, which all introduced major infrastructure advancements. The new features include fast withdrawals, reducing transfer times from 15 days to under a minute, and instant confirmations, which are particularly beneficial for DeFi traders and gamers. These improvements are expected to enhance user experience and attract more developers and users to the platform.

Gaming has also seen significant growth on Etherlink, with the AAA open-world extraction shooter REAPER ACTUAL announcing its use of the blockchain for web3 initiatives. The game, developed by Distinct Possibility Studios, is one of the major highlights of the year, showcasing the platform's potential in the gaming sector. Additionally, Etherlink has attracted 438,500 unique gaming users, underscoring its appeal as a decentralized infrastructure for gaming.

Market Impact and Investor Reactions
The surge in TVL and the introduction of Farfadet have solidified Etherlink's position as a top-tier EVM-compatible blockchain. The platform has not only attracted millions in TVL but has also democratized uranium access and enhanced network performance. These developments have drawn attention from both institutional investors and developers looking to migrate from Ethereum and other chains.

Etherlink's success contrasts with recent struggles in the DeFi sector. For instance, DeFi Technologies faced legal scrutiny and a significant drop in stock price following the disclosure of challenges with its arbitrage strategy. This serves as a reminder of the volatility and risks inherent in the DeFi space, despite the broader growth trends observed in 2025.

Regulatory and Market Trends
The regulatory landscape for cryptocurrencies and DeFi is also evolving. In the U.S., lawmakers are pushing for reforms to address the "double taxation" of staking rewards before 2026. They argue that the current tax policies discourage participation in network security and hinder American leadership in digital asset innovation. These efforts reflect growing recognition of the importance of DeFi and blockchain technology in the financial ecosystem.

Meanwhile, the broader crypto market has seen mixed performances. For example, Sharplink Gaming reported a tenfold year-over-year increase in Q3 2025 revenue, primarily driven by gains in Ethereum holdings. The company's stock rose 2.77% following the announcement, indicating investor confidence in its Ethereum-focused strategy. This stands in contrast to DeFi Technologies, where investor sentiment turned negative due to delayed arbitrage opportunities and reduced revenue forecasts.

Future Outlook
Looking ahead, Etherlink is well-positioned to continue its growth trajectory in 2026. The Farfadet upgrade ensures the platform remains competitive in terms of scalability. With a thriving DeFi and gaming ecosystem already in place, the focus now shifts to sustaining user adoption and attracting new projects to the network.

The broader DeFi and blockchain sectors will likely remain dynamic, with regulatory changes, market volatility, and technological advancements shaping the landscape. Investors and developers will be closely watching how platforms like Etherlink adapt and whether they can maintain their momentum in the face of growing competition and evolving user expectations.