DeFi Total Value Locked Reaches All-Time High of $237B While DApp Wallets Decline by 22% in Q3

The decentralized application (DApp) sector concluded the third quarter of 2025 with varied outcomes, as decentralized finance (DeFi) liquidity hit a record peak while user engagement plummeted, according to recent insights from DappRadar.

In a report shared with Cointelegraph, DappRadar stated that the average number of daily unique active wallets stood at 18.7 million in Q3, representing a 22.4% decrease from the previous quarter. In contrast, DeFi protocols collectively secured $237 billion, marking the highest total value locked (TVL) ever observed in this domain.

The report underscores a noticeable gap between institutional investments in blockchain-based financial services and the level of retail user engagement with DApps. Even as DeFi TVL reached unprecedented liquidity levels, overall activity remained sluggish, indicating diminished retail participation.

“Throughout the entire quarter, all categories noted a decline in active wallets, with the most significant impact felt in the Social and AI categories,” DappRadar reported. AI-centric DApps experienced a drop of over 1.7 million users, decreasing from a daily average of 4.8 million in Q2 to 3.1 million in Q3, while SocialFi DApps fell from 3.8 million to 1.5 million in Q3.

DeFi TVL reached a new all-time high in Q3

DappRadar credited the record liquidity in DeFi to multiple converging factors, such as increased institutional interest in Bitcoin (BTC) and stablecoins, regulatory clarity stemming from the US GENIUS Act, and new infrastructures facilitating real-world asset (RWA) tokenization.

DappRadar noted that stablecoins have emerged as a bridge linking cryptocurrency with traditional finance. As reported earlier by Cointelegraph, stablecoin inflows reached $46 billion in Q3, prominently led by Tether’s USDt (USDT) and Circle’s USDC (USDC).

Besides stablecoins themselves, platforms dedicated to stablecoins also contributed to the rise in DeFi TVL.

DappRadar highlighted Plasma, a layer-1 chain specifically designed for stablecoins, which launched with over $8 billion in TVL during its inaugural month.

Related: $10B in Ethereum awaits exit as validator withdrawals surge

BNB Chain emerges as a top DeFi network in Q3

During this quarter, Ethereum retained its position as the leading DeFi network with $119 billion in locked assets, despite a slight 4% drop compared to Q2. Solana, now in second place, experienced a 33% decline in its DeFi TVL, falling to $13.8 billion in Q3.

While the top two DeFi networks in terms of TVL exhibited a slowdown, BNB Chain, the third-largest network in DeFi TVL, witnessed a 15% increase in locked assets during the quarter.

DappRadar attributed the boost in BNB Chain’s TVL to the launch of the perpetual decentralized exchange (DEX) Aster, which has been gaining popularity since September.

Even though Aster’s trading volumes surged within the perpetual trading landscape, data aggregator DefiLlama questioned the validity of Aster’s figures.

According to DefiLlama co-founder 0xngmi, trading volumes on Aster began to closely resemble Binance Perp volumes. Consequently, the platform removed Aster from its listing.