|

Institutions turn to DeFi with over $260 billion in TVL as Bitcoin demand weakens

  • The total value locked among DeFi protocols has reached an all-time high at $267 billion.
  • A growing number of institutions have been dabbling in the DeFi space as a recent report noted a greater appetite in ETH used to borrow and lend across Dapps.
  • The demand for Bitcoin has trended downward in Q3 as there was a lack of opportunities for traders.

Decentralized finance has resumed its growth recently as the cryptocurrency market proceeded with rallies in the past few weeks, with total value locked (TVL) reaching an all-time high at $267 billion. According to a recent report, Bitcoin demand has slowed down in the third quarter due to the lack of opportunities for traders to profit.

DeFi expands as Bitcoin lacks behind

Following the tremendous Bitcoin rally in October, the TVL in DeFi surpassed $260 billion, according to DeFillama. Protocols that support the DeFi ecosystem, including Ethereum, Solana and Avalanche, have also seen a considerable climb in their prices. Solana recently reached a record high at $260. 

DeFi

TVL in DeFi

Daily transactions have also soared on the DeFi protocols, including PancakeSwap, which runs on the Binance Smart Chain. The network witnessed a rise in active users to above 600,000, with the number of active addresses on the protocol soaring to 2 million.

According to the Q3 report by Genesis, the number of institutions entering the DeFi industry has been growing. There has been an increase in appetite for Ether from large companies to borrow and lend across various decentralized applications (Dapps).

This could also be due to a “significant structural change” in the cryptocurrency market, as retail exchanges started to deleverage. During the second quarter of 2021, several digital asset exchanges limited their leverage offerings, including Binance, which reduced its levels to a maximum of 20x for accounts that have been opened for less than a month.

Genesis further highlighted a decline in the weighting of Bitcoin in its overall portfolio due to the lack of BTC-denominated trading opportunities. While interest in the leading cryptocurrency witnessed a downturn, emerging Layer-1 protocols including Solana have witnessed a boost in demand, serving as natural liquidity pairs for DeFi yield opportunities.

Bitcoin price projects bullish target at $71,000

Bitcoin price appears to have sliced above a critical resistance trend line, suggesting that the leading cryptocurrency is ready for a climb toward $71,000.

Bitcoin price has formed a symmetrical triangle pattern on the 4-hour chart, suggesting a move of 13%. Since the bellwether cryptocurrency broke above the upper boundary of the prevailing chart pattern, which puts the optimistic target toward $71,594 on the radar.

BTCUSDT

BTC/USDT 12-hour chart

The first line of defense for Bitcoin price is at the upper boundary of the governing technical pattern at $63,208, then at $61,840, where the 21 and 50 twelve-hour Simple Moving Averages (SMAs) intersect.

Author

Sarah Tran

Sarah Tran

Independent Analyst

Sarah has closely followed the growth of blockchain technology and its adoption since 2016.

More from Sarah Tran
Share:

Editor's Picks

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.

Top Crypto Gainers: Decred, Zcash, and Dogecoin lead recovery as Bitcoin crosses $72,000

Bitcoin trades above $72,500 at press time on Thursday, holding its 6% gain from the previous day, contributing to a broader market recovery. The total cryptocurrency market capitalization stands at over $2.43 trillion as the broader market sentiment improves significantly.

Trump presses Congress on CLARITY bill after meeting with Coinbase CEO

US President Donald Trump is urging legislators to pass the CLARITY Act after allegedly meeting with Coinbase CEO Brian Armstrong amid growing dispute over stablecoin yields.

Ethereum Price Forecast: ETH jumps alongside a spike in open interest, realized price could limit upside

Ethereum (ETH) has jumped above $2,100 on Wednesday, following a general recovery across the crypto market. The move was accompanied by a spike in Ethereum's open interest, which has increased to 13.43M ETH — its highest level since January 31. The top altcoin's OI has been rising since February 19, adding 1.2M ETH over the past two weeks. 

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: Another month of losses, and it’s been five

Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Friday, but the Crypto King is poised to close February on a fragile footing, marking its fifth consecutive month of losses since October and a rare start to the year with back-to-back monthly corrections.