Ethereum Dominated DeFi in 2025 with $99B Locked, Outpacing Competitors Across Networks

While networks such as Solana and BNB have gained attention for their fast trading capabilities and retail-focused applications, they lag far behind Ethereum in terms of total capital held in decentralized finance (DeFi). In its 2025 year-end review, Ethereum revealed that its DeFi total value locked (TVL) expanded at a rate significantly higher than that of competing layer-one blockchains. This growth reinforced Ethereum’s position as the principal hub for large-scale DeFi activity and liquidity.

Ethereum’s Deep Liquidity Sets It Apart

Ethereum reported in a detailed post on X that it continued to strengthen its role as a core platform for the digital economy throughout 2025. The network noted that more than $99 billion is currently locked in its DeFi ecosystem, a figure more than nine times larger than the next largest layer-one blockchain. This gap shows Ethereum’s unmatched capacity to host substantial financial activity and deep liquidity pools.

The extensive liquidity allows Ethereum to handle large trades efficiently, supported by well-capitalized lending markets and comprehensive order books. Such depth has made it increasingly attractive to institutional investors and large-scale participants.

Transaction Costs Drop, Accessibility Expands

In 2025, Ethereum’s main network saw transaction costs fall to their lowest levels in five years, while Layer 2 solutions charged less than a cent per transaction. This made everyday activities such as making payments, remittances, and savings much easier for users. Upgrades to paymaster systems allowed major applications to cover or remove fees entirely, lowering barriers and strengthening Ethereum’s lead in total value locked.

Ethereum’s broader ecosystem also saw significant activity in both stablecoins and prediction markets, processing over $18.8 trillion in stablecoin transactions throughout 2025 and handling roughly $20 billion in betting volume across its main chain and Layer 2 solutions.

Upgrades Enhance Performance and User Experience

The network’s ecosystem also saw two significant upgrades in 2025: Pectra and Fusaka. These enhancements made wallets easier to use and more approachable for both everyday users and professional participants. The updates improved the speed and capacity of operations, strengthened access to Layer 2 solutions, and ensured the platform could handle increased activity while maintaining steady, resilient growth.

In the same year, Ethereum celebrated ten years since its launch, marking a decade of milestones, including :

• The network supporting over 88 million smart contracts and reaching a record 1.74 million daily on-chain transactions, demonstrating the scale of its activity.
• Sustaining the largest developer community in blockchain with 32,000 active contributors and bringing in more than 16,000 new developers between January and September.

Ethereum Price Trends and Key Support Levels

Ethereum’s market performance in 2025 mirrored its operational growth. The cryptocurrency reached an all-time high of $4,953 in August but entered a downtrend in October. Currently trading at $3,249, ETH has recently broken above its descending trendline and surpassed key resistance at $3,050. It is now testing $3,445, though a minor pullback has occurred due to profit-taking.

If Ethereum can reclaim the $3,500–$3,600 range, it may trigger a strong rally toward $4,000, with $5,000 remaining a major long-term target. Maintaining support at $3,050 will be critical for sustaining bullish momentum, as this level is essential to prevent a reversal of the upward trend.