The Shifting Value Chain in Web3: From Blockchains to Wallets and DeFi Apps

The decentralized finance (DeFi) ecosystem has undergone a profound transformation in 2025, shifting from speculative experimentation to a durable infrastructure layer for global digital finance. As the value chain in Web3 evolves, investment opportunities are increasingly concentrated in protocols that bridge blockchain networks, wallet infrastructure, and DeFi applications. This shift is driven by maturing user adoption, institutional-grade security, and the emergence of stablecoins as a universal settlement layer. For investors, understanding this reconfiguration is critical to identifying high-growth opportunities in protocols that are redefining the financial stack.

The Rise of DeFi as Core Infrastructure

DeFi's transition from niche experimentation to foundational infrastructure is evident in its total value locked (TVL) and transaction volumes. Ethereum's DeFi ecosystem alone maintained a TVL of $99 billion in 2025, dwarfing the next-largest Layer 1 by nine times. The broader DeFi space saw peak TVL reach $237 billion, with lending, liquid staking, and restaking protocols dominating the landscape. This growth is underpinned by Ethereum's role as a settlement layer, processing $18.8 trillion in stablecoin transactions and achieving Layer 2 throughput of 5,600 TPS while maintaining low fees.

Key protocols like Aave v3 and Lido exemplify this shift. Aave v3, with $42.47 billion TVL, has solidified its position as a leading lending platform, generating $13.2 million in monthly protocol revenue. Lido, meanwhile, locked $38.3 billion in assets, serving as a critical collateral layer for Ethereum staking and Layer 2 ecosystems. These protocols are no longer just tools for retail speculation; they are infrastructure for institutional-grade capital allocation and risk management.

Wallet Infrastructure: The New Onchain Gateway

Wallet protocols have emerged as pivotal nodes in the DeFi value chain, enabling seamless onboarding and execution. As DeFi matures, wallets are no longer passive storage tools but active participants in liquidity provision, governance, and cross-chain interoperability. Protocols like Plasma, Stable, and Tempo are designed for high-velocity onchain transactions and enterprise-grade infrastructure, catering to both retail and institutional users.

The U.S. has become a bellwether for this trend, with crypto activity surging 50% between January and July 2025 compared to the same period in 2024. India, Pakistan, and Brazil are also seeing rapid adoption, driven by stablecoin integration into local payment systems and DeFi-based lending platforms. Wallets that facilitate these flows-such as those enabling zero-knowledge proofs (ZKPs) for privacy or multi-chain asset management-are poised to capture significant value as the onchain financial ecosystem expands.

Investment Opportunities in High-Growth Protocols

The DeFi market, valued at $51.22 billion in 2025, is projected to grow at a compound annual rate of 8.96% through 2030, driven by regulatory clarity in the U.S. and EU and the proliferation of real-world asset (RWA) tokenization. Protocols with robust economic models and strategic integrations are best positioned to capitalize on this growth.

• Aave v3 continues to consolidate its dominance in onchain lending, with expanding integrations into Layer 2 networks like Linea and Plasma. Its sustainable treasury inflows ($96 million in fees) and growing share of global debt position it as a foundational asset in the DeFi stack.
• Lido's stETH derivatives have become a cornerstone for liquidity provision, with $38.3 billion TVL and a critical role in Ethereum's restaking economy. Its ability to tokenize staking rewards and enable cross-protocol composability makes it a key player in the value chain.
• Uniswap v4 leads in usage, generating $77 million in monthly fees, though its lack of fee retention highlights the need for governance-driven revenue models. Innovations like dynamic fee toggles and AMM refinements could address this gap.
• MakerDAO (Sky) has rebranded to focus on stablecoin-driven RWA integration, with $6.1 billion TVL and $19.4 million in retained revenue. Its role in stabilizing DeFi treasuries and enabling tokenized real-world assets positions it for long-term growth.

The Future of the DeFi Value Chain

As the DeFi ecosystem matures, the value chain is becoming more structured and interconnected. Protocols are specializing in execution, liquidity, and governance, creating a unified trading stack where issuance rails, spot markets, and derivatives operate in harmony. This interconnectedness enables faster liquidity rotation, predictable execution, and efficient capital allocation-traits that align with institutional-grade financial systems.

However, risks remain. Smart contract exploits and oracle manipulation continue to pose threats, though the sector's resilience and innovation- such as tokenized RWAs and ZKP-based privacy-suggest a trajectory toward robustness. For investors, the key is to prioritize protocols with transparent risk controls, credible economic models, and strategic partnerships.

Conclusion

The shifting value chain in Web3 reflects a broader transition from blockchain-centric speculation to a mature financial infrastructure. DeFi and wallet protocols are no longer peripheral; they are the bedrock of a global onchain economy. For investors, the opportunities lie in protocols that bridge blockchain networks, wallet infrastructure, and DeFi applications-those that enable seamless execution, secure custody, and scalable liquidity. As the DeFi market grows and institutional adoption accelerates, these protocols will define the next phase of Web3's evolution.