Ethereum’s DeFi Reign Slips 37% Since 2021—A Blockchain Power Shift?

Current metrics place the total value locked into decentralized finance (DeFi) at approximately $117.856 billion. Ethereum, once commanding more than 56% of that figure at the close of 2024, has since dipped to 51.24% in May, marking a notable decline in its share.

Battle for DeFi Dominance Heats up: Ethereum Slides, Solana and Bitcoin Advance

Ethereum still leads in several categories, including total value locked in DeFi, non-fungible token (NFT) sales, and a large portion of the value of tokenized U.S. Treasuries and stablecoins built atop its smart contract infrastructure. Yet in recent years, that lead has narrowed, as rival blockchains have gained ground and chipped away at its dominance across all of these sectors.

Source: Defillama.com

Zooming in on decentralized finance (defi) total value locked (TVL) back in February 2021, Ethereum held an impressive 91%-plus share of the DeFi pie. Fast forward 51 months, and that figure has tapered down to 53.68%, reflecting a 37.32% drop. At the beginning of 2025, Ethereum’s grip on DeFi TVL stood at 56.38%, but it has since shed 2.7%, dipping as low as 51.24% earlier this month.

DeFi challengers have emerged from blockchains like Solana, Bitcoin, Tron, and Binance Smart Chain (BSC). Based on defillama.com’s chain statistics, Solana holds 7.99% of the total value locked (TVL), followed by Bitcoin at 5.67%, Tron close behind at 5.64%, and BSC rounding out the top five with 5.44%. Other DeFi networks such as Base, Arbitrum, Sui, Avalanche, Hyperliquid, and Berachain are steadily climbing the ranks.

Lately, the data paints a picture of a maturing DeFi ecosystem where Ethereum’s early advantage is being gradually eroded by a wave of competitors. While Ethereum still remains at the forefront, the shifting balance suggests a more pluralistic future. Alongside this, another dominant chain could very well rise to prominence and dethrone ETH’s current position at the helm.

The current trend implies that innovation and adoption are no longer confined to a single chain but are dispersing across a growing field of contenders.

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