Ethereum's Total Value Locked (TVL) remains structurally elevated at approximately $68.6 billion, signaling a strengthening role as the central hub of decentralized finance despite a broader market pullback. Data from DeFiLlama indicates that, unlike previous cycles, the post-2022 drawdown did not reset activity to prior lows, establishing a significantly higher base. This resilience suggests capital is becoming more selective, concentrating around Ethereum's core infrastructure—including stablecoins, lending markets, and liquid and restaking protocols—rather than dispersing across the wider DeFi landscape.
In contrast, total DeFi TVL across all chains has retraced from multi-year peaks to roughly $182 billion, according to data from Sentora. This divergence points to a market consolidation, not a broad-based exit. The composition of TVL has shifted dramatically, with lending, staking, and restaking platforms now dominating the rankings. Aave maintains its leading position with a TVL of $54.98 billion in December 2025, up from $26.13 billion in December 2021. Lido has jumped from 7th to 2nd place ($25.85B TVL), while new entrants like the restaking platform EigenCloude ($12.34B), WBETH ($10.43B), and Morpho ($9.08B) fill out the top ten.
This structural shift highlights a move from activity-driven protocols (like DEXs and yield aggregators) to balance-sheet infrastructure. Commentary from SharpLink's Joseph Chalom provides context, arguing that stablecoin adoption, tokenized real-world assets (RWAs), and institutional participation are laying the groundwork for the next growth phase, with Ethereum as the primary settlement layer. Chalom predicts that Ethereum's TVL could 10x in 2026, fueled by its dominance in these key areas. The data collectively suggests a market recalibration where capital, while still onchain, is becoming more disciplined, favoring proven and essential infrastructure over speculative experimentation.
