DeFi TVL Surges Past $160B as Lido and AAVE Hit Record Highs

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• DeFi TVL hit $161B, the highest since 2021.
• Lido ($42.5B) and AAVE ($41.1B) reached new all-time highs in TVL.
• Bitcoin dominance fell to 57%, suggesting liquidity may shift into altcoins.

The decentralized finance (DeFi) market is experiencing a powerful resurgence. Total value locked (TVL) across protocols has surged past $161 billion, its highest level since April 2021, signaling renewed confidence from both retail and institutional investors.

Ethereum Leads, Solana Follows in TVL Growth

According to data from DefiLlama, Ethereum remains the dominant chain with $97.6 billion in TVL, nearly two-thirds of the total market share. Solana takes second place at $11.4 billion, consolidating its role as the leading alternative to Ethereum’s DeFi ecosystem.

This influx of liquidity highlights a familiar cycle: capital flows first into Ethereum and blue-chip DeFi platforms before spilling over into smaller altcoins. Analysts suggest that this pattern may already be unfolding, potentially marking the beginning of altseason.

Lido and AAVE Battle for the Top Spot

Two protocols have seen especially sharp growth: Lido and AAVE.

• Lido Finance, the liquid staking giant, jumped from $30 billion to $42.5 billion in just three weeks, overtaking AAVE as the largest DeFi protocol.
• AAVE, the leading decentralized lending platform, added roughly $9 billion, climbing to $41.1 billion TVL over the same period.

Their growth reflects rising demand for staking and lending services, suggesting that investors are becoming more comfortable with risk assets beyond Bitcoin and Ethereum.

Also Read: XRP ETF Approval Odds Hit 85% — Analysts See Prices Surging to $10–$50

Altseason Signals: Declining BTC Dominance

Another key trend fueling speculation is the drop in Bitcoin dominance, which fell to 57%, its lowest since January. Meanwhile, Ethereum and lower-cap altcoins have gained momentum, supported by stronger trading activity and capital inflows.

Despite a broader bearish market tone and ongoing macroeconomic uncertainty, sentiment around DeFi and altcoins remains cautiously bullish. Analysts believe that clarity on U.S. Federal Reserve rate cuts and easing geopolitical tensions could trigger the next major rally in risk assets.

Confidence Returns to DeFi

With DeFi TVL crossing $160 billion and protocols like Lido and AAVE setting new records, the sector is showing renewed strength. If historical patterns repeat, capital could soon flow into smaller altcoins, potentially confirming the start of a new altseason.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses