Ethereum loses 10% of its DeFi market share as rival chains close in
Ethereum's share of the total value locked (TVL) in DeFi compressed from 63.5% at the start of 2025 to around 54% as of May 7, hovering near the lowest level recorded since May 2025. DefiLlama puts Ethereum's current...
Bitcoin 1 Minute
A notable development has hit the crypto markets. Ethereum's share of the total value locked (TVL) in DeFi compressed from 63. 5% at the start of 2025 to around 54% as of May 7, hovering near the lowest level recorded since May 2025. DefiLlama puts Ethereum's current TVL at $45.
4 billion, while the chains absorbing share have each staked out a distinct function, such as decentralized exchange (DEX) flow, stablecoin settlement, BTC collateral, consumer onboarding, and perpetuals trading. 66% of DeFi TVL, BNB Chain 6. 44%, and Hyperliquid 1.
Market Dynamics
That clustering defines that DeFi has moved from a single Ethereum-centered hub into a network of specialized rails. A bar chart shows Ethereum holding approximately 54% of DeFi TVL as of May 7, 2026, with six rival chains each holding under 7%. Which chains captured market BSC built its position on Binance-linked distribution.
In the second quarter of 2025, CoinGecko reported that PancakeSwap volume surged 539. 2% quarter-over-quarter to $392. 6 billion, accounting for 45% of top-10 DEX volume, with Binance Alpha routing trades directly through PancakeSwap.
DefiLlama currently shows BSC with $5. 55 billion in TVL and $739. 6 million in 24-hour DEX volume.
Market Impact
Binance has deepened that integration via Alpha Earn, which lets users provide liquidity to PancakeSwap V3 directly from Binance Wallet, and Alpha 2. 0 embeds DEX trading inside the Binance Exchange interface. Binance controls the front end, PancakeSwap executes the trade, and BSC collects the volume.
Tron operates on a different axis. 6 billion in stablecoins on Tron, with USDT accounting for 97. 86% of that figure, while 24-hour DEX volume stands at only $55.
Tron's DeFi TVL of $5. 19 billion understates its role as the chain with the largest stablecoin flows in crypto, running as a dollar-settlement rail with thin app diversity and enormous throughput. Bitcoin's DeFi TVL reached $5.
Crypto markets are watching this development closely as investors weigh its potential impact on prices.
