DeFi Reaches New Heights with Record $237 Billion TVL, but User Activity Declines
Decentralized Finance (DeFi) has achieved a significant milestone, reaching a Total Value Locked (TVL) of $237 billion in the third quarter of 2025. However, this growth is accompanied by a decline in user activity, with daily active wallets decreasing by 22% during the same period. According to DappRadar’s “State of the Dapp Industry Q3 2025” report, technological advancements continue to drive the DeFi market to record highs despite the decline in user engagement.
DappRadar researcher Robert Hoogendoorn notes that “the rise of stablecoins is truly putting DeFi at the center of traditional finance.” Ethereum, which has historically dominated the DeFi sector, accounted for over 49% of the value of the entire sector in the third quarter of 2025, worth $237 billion. 
Decline in User Activity Raises Concerns about Retail Exit
The decline in daily active wallets has raised concerns about a possible exit from the retail market. The industry average was 18.7 million daily active wallets in the third quarter of 2025, down from early 2025 levels. Each category saw lower wallet activity, with the Social and AI categories experiencing the greatest impact. 
NFTs Experience Significant Growth, While AI and Social Categories Decline
NFTs have gained market share and are now in second place with 18.5% of the market. The NFT market saw trading volumes increase throughout 2025, with over 18.1 million NFTs sold in the third quarter, representing a trading volume of $1.6 billion. In contrast, the AI category lost momentum over the quarter, with average active wallets declining from 4.8 million in the second quarter to 3.1 million in the third quarter. 
Hackers Exploit Multi-Sig Wallets, Stealing $434 Million in Q3
Despite record DeFi TVL and widespread growth, digital threats from malicious actors persist. In the third quarter of 2025, hackers stole over $434 million worth of cryptocurrencies, with the largest attacks involving social engineering and exploits. 
For more information, visit https://cryptonews.com/news/defi-tvl-hits-record-237b-as-daily-active-wallets-plunge-22-in-q3-retail-exit/
