At a Glance
- Ethereum’s DeFi total value locked topped $99 billion in 2025
- Layer-2 fees dropped below $0.01 as blob capacity rose
- $18.8 trillion in stablecoin volume settled on-chain
- Why it matters: Lower costs and clearer rules are cementing Ethereum’s lead in decentralized finance
Ethereum closed 2025 with record-breaking on-chain activity, leaving rival Layer-1 chains far behind as transaction costs plunged and institutions piled in.
DeFi Dominance
The network’s DeFi protocols now hold more than nine times the value locked on the next-largest Layer 1, according to data from DefiLlama.
Lower gas fees fueled the surge:
- Layer-1 fees hit five-year lows
- Layer-2 transactions cost under $0.01
- Paymaster contracts let apps cover user gas, removing the need to hold ETH
Institutional Wave
Major platforms expanded Ethereum offerings last year:
- Robinhood, Gemini, and Kraken listed tokenized stocks on Layer-1 and Layer-2
- Robinhood is building its own Layer-2 using Arbitrum Orbit
- New crypto neobanks launched payment cards and rewards programs, logging millions in daily spend
Network Milestones
Technical upgrades kept pace with demand:
| Metric | 2024 | 2025 |
|---|---|---|
| Layer-2 TPS | ~3,000 | 5,600 |
| Blob capacity | 3 per block | 6 per block |
| Layer-1 gas limit | 45 M | 60 M |
The Fusaka upgrade, shipped in December, doubled blob space and cut rollup costs. July marked Ethereum’s 10-year mainnet anniversary with 88 million smart contracts deployed and a record 1.74 million daily transactions. Developer headcount stayed strong at 32,000 active contributors, with 16,000 new entrants through September.
Institutional Treasury Shift
Exchange-traded funds and corporate treasuries now hold $35 billion in ETH. Institutions also placed $12 billion in real-world assets on-chain and tapped DeFi strategies for yield.
Key Takeaways
- Ethereum’s DeFi lead widened to $99B TVL, dwarfing competing Layer-1s
- Sub-cent Layer-2 fees and expanded blob capacity slashed user costs
- Regulatory clarity spurred neobanks and tokenized-stock launches
- Institutional ETH holdings topped $35B as on-chain asset management grew
With throughput rising and costs falling, Ethereum finished 2025 cemented as the go-to settlement layer for both retail DeFi and institutional finance.
