DeFi market growth and asset tokenization

The decentralized finance (DeFi) sector has experienced a significant rebound in activity and valuation. In August, decentralized exchange spot trading volumes approached all-time highs, with combined spot and perpetual volumes exceeding $1.15 trillion for the first time. During this period, total value locked (TVL) across protocols rose by approximately $21 billion to reach $83.2 billion, supported by a surge in tokenized real-world assets (RWAs) such as Treasury funds and private credit.

By the end of the third quarter, TVL continued to climb, rising 37.9% to reach $95.42 billion. This growth was largely driven by rising asset prices, particularly a 67% increase in the price of Ether, rather than new capital inflows. Ethereum-related TVL grew to $53.54 billion, accounting for over 56% of the total market.

Other developments include the emergence of tokenized stocks within protocols and the rapid growth of the Robinhood Chain, an Ethereum Layer 2 network that surpassed $1 billion in TVL. On the institutional front, Morgan Stanley has launched a Digital Asset Lab to investigate stablecoins and tokenization.