Decentralized Finance Total Value Locked hits 40-month peaks
The global crypto market is experiencing a surge, with the market capitalization reaching an all-time high of $4.04 trillion. This bullish momentum is largely driven by strong institutional accumulation, breaking of long-term technical resistance levels, growing ETF inflows, and supportive regulatory developments.
Ethereum (ETH), the second-largest cryptocurrency by market cap, is approaching its all-time high. The digital asset recently broke above its 1.5-year resistance level around $4,100, a significant technical milestone that has ignited bullish calls for a potential rally toward $7,000 by the end of 2025.
One of the key factors contributing to this bullish momentum is institutional buying. Ethereum has seen aggressive accumulation by institutional investors, with reports of nearly $1 billion worth of ETH bought in a single week by a large institution through OTC desks and custodians such as Galaxy Digital and FalconX. Publicly traded companies have also been adding billions of dollars of ETH to their treasuries.
ETF inflows and institutional interest continue to build, with firms like BlackRock supporting ETH accumulation. Spot Bitcoin (BTC) exchange-traded funds in the US brought over $6 billion in net inflows last month, while ETH-based exchange-traded funds in the US brought over $5.4 billion in net inflows last month.
Regulatory support and innovation are also playing a significant role in the bullish sentiment. The GENIUS Act promotes stablecoin use, enhancing Ethereum’s fee demand. Additionally, growing network activity in NFTs, decentralized finance, and Layer 2 scaling solutions demonstrate healthy ecosystem development fueling adoption.
Ethereum’s market cap has climbed to over $523 billion, surpassing major companies like Mastercard. However, recent dips from highs near $4,700 to $4,400 are regarded as healthy pauses rather than trend reversals, supported by continued inflow and broad market optimism.
The DeFi total value locked (TVL) surpassed $150 billion for the first time since April 2021, gaining 84% over the past four months. AAVE's TVL reached a new all-time high of $38.5 billion, while Lido, the top liquid staking platform, has a TVL of $37.7 billion.
There has been a steady rise in interest from investors and short-term traders in the DeFi sector. Ethereum's market cap surpassed $500 billion with a $43 billion 24-hour trading volume. As of August 2025, Ethereum's price reached $4,332, its highest since November 2021, falling short of its all-time high of $4,891.
In conclusion, Ethereum's push toward new highs is driven by fundamental adoption trends, significant institutional and corporate accumulation, strong technical breakthroughs, and a growing DeFi ecosystem underpinned by regulatory facilitation and Layer 2 innovations. This combination is underpinning the bullish sentiment across the crypto and DeFi markets.
finance: Institutional buying of Ethereum (ETH), such as purchases worth nearly $1 billion in a single week by a large institution through OTC desks and custodians like Galaxy Digital and FalconX, is contributing to the bullish sentiment in the crypto market.
technology: The increasing network activity in NFTs, decentralized finance (DeFi), and Layer 2 scaling solutions on Ethereum demonstrates healthy ecosystem development fueling adoption and innovation, strengthening the crypto market.
