According to the latest data from DeFiLlama, the total value locked (TVL) across decentralized finance protocols continues to shift, highlighting both the enduring strength of Ethereum and the rising competition among alternative chains. Ethereum’s share of total DeFi TVL has fallen from 63.5% at the start of 2025 to approximately 54% as of May 7, 2026, a decline of 9.5 percentage points across 16 months. However, the absolute figure tells a different story: Ethereum still commands $45.4 billion in locked value, nearly as much as the next five rivals combined. The declining share reflects a rapidly expanding market where new capital flows into other ecosystems rather than Ethereum losing its own deposits.
Beneath Ethereum, four competitors are now virtually tied for second place. Solana holds 6.66%, BNB Smart Chain 6.60%, Bitcoin 6.35%, and Tron 6.17%, spanning a minuscule 0.49 percentage points. This cluster suggests the DeFi market has not yet crowned a definitive second-place chain, and capital is distributing agnostically across architectures. Bitcoin’s 6.35% share is particularly notable: built entirely on wrapped assets, L2s, and bridge infrastructure, it has reached this position without a native smart contract layer. The data also points to Base, the Coinbase-incubated layer-2, at 5.44%, just 0.73 points behind Tron, making it a serious candidate to join the top-tier cluster soon.
Separately, DeFiLlama’s weekly TVL growth leaderboard, shared by Phoenix Analytics, reveals a different kind of momentum. The decentralized staking protocol Stakee ($Stakee) led all projects with a 89.7% surge, reaching $35.3 million in TVL. Fully Homomorphic Encryption ($FHE) followed at +77.9% with $466.7K TVL, while STON.fi ($STON) and Beethoven X ($BEETS) posted gains of 67.7% and 58.2%, respectively. Other notable movers included EVAA Protocol (+51.7%), BTW (+37.9%), and Storm Trade (+32.5%). Even smaller protocols like Hyperliquid Protocol Layer and Dolomite recorded double-digit percentage increases, underscoring that new capital is actively seeking opportunities across the entire DeFi landscape.
The juxtaposition of Ethereum’s relative decline with the rapid growth of niche protocols paints a picture of a maturing market where dominance is no longer measured by share alone. As Base closes in on the 6% club and Hyperliquid’s perpetual-focused TVL grows to 1.81%, the race for a breakout second-place champion remains wide open. A single chain reaching 10% TVL share within 12 months could signal a structural shift, but for now, DeFi capital continues to spread across a diverse array of networks.
