DeFi TVL hits record $237B as daily active wallets fall 22% in Q3: DappRadar

DeFi (Decentralized Finance) achieved a groundbreaking milestone in Q3 2025, with Total Value Locked (TVL) surging to an unprecedented $237 billion, marking the highest liquidity levels ever recorded in the cryptocurrency ecosystem. Despite this remarkable DeFi growth, the broader blockchain landscape experienced significant headwinds as decentralized application (DApp) wallet activity plummeted 22% during the same period.

The cryptocurrency market's mixed signals reflect shifting investor sentiment, with institutional capital continuing to flow into established DeFi protocols while retail participation wanes. Bitcoin and major altcoins have contributed to this TVL expansion, as yield farming and liquidity mining strategies attract substantial institutional investments.

However, the sharp decline in daily active wallets signals cooling enthusiasm for emerging sectors like SocialFi and AI-powered DApps, which previously drove blockchain adoption. This divergence suggests market maturation, where established DeFi platforms consolidate gains while speculative crypto projects lose momentum.

The $237 billion TVL milestone reinforces DeFi's position as cryptocurrency's most resilient sector, even as overall blockchain engagement faces challenges. Investors should monitor whether this trend indicates temporary market consolidation or a fundamental shift in decentralized finance adoption patterns.