DeFi TVL has recovered to $950 billion... Reassessed as financial infrastructure rather than a speculative tool

DeFi (Decentralized Finance) total value locked (TVL) has recovered to $950 billion. More importantly, this recovery is not simply a flow of funds, but has a different nature than in the past.

According to a report from CryptoQuant on the 14th, analysis based on DeFiLlama data indicates that this rebound is not short-term capital chasing “yields” like in 2021, but a sustained inflow driven by actual demand. The overheated market sentiment suppressed since the peak in 2021 has faded, but the funds locked in on-chain protocols have increased again. The analysis suggests that this capital flow is a trend of inflow and retention rather than outflow.

The core focus of the report is not the TVL figures themselves, but the shift in perspective on DeFi. DeFi is no longer viewed solely as a high-yield investment channel but is being reinterpreted as a “financial infrastructure” that replaces traditional financial intermediaries. Unlike existing structures where assets are held by institutions such as banks and brokers, in DeFi, users directly hold assets through smart contracts. This means the center of trust shifts from institutions to code.

Self-Custody and Stablecoins

The key to this change is “self-custody.” In Japan, this trend is transforming from theory into actual services. Hashport Wallet lowers the barrier to holding private keys, helping users who were originally accustomed to entrusting their financial assets to institutions to also manage their wallets independently.

The report views stablecoins as the true driving force behind the operation of the DeFi ecosystem. Because assets with stable prices are needed for functions like payments, remittances, and loans. Volatile cryptocurrencies alone are insufficient to replace financial infrastructure, but stablecoins fill this gap. The expansion of the global stablecoin market is not merely a crypto hype but is interpreted as a sign that a new payment/settlement layer is growing.

Ethereum and Japan-Style DeFi Model

A similar trend has also been observed on the Ethereum (ETH) network. With recent increases in transaction activity and price synchronization, some analysts believe that actual usage demand is recovering, rather than just speculative buying. This suggests that when price rises and network activity increase simultaneously, the on-chain economy is likely being strengthened.

Japan is integrating this trend with its own financial model. The stablecoin “JPYC,” pegged to the Japanese yen, provides a foundation for Japanese individuals and institutions to access DeFi systems more easily. This structure reduces reliance on dollar-pegged protocols, lowers currency exchange costs, and simplifies regulatory complexities, enabling users to conduct on-chain financial activities using local currency. Coupled with Hashport Wallet’s self-custody infrastructure, this has led to the formation of a Japan-style DeFi access model.

Stablecoin Share and Market Interpretation

On the other hand, the share of stablecoins, after a recent surge, has entered a consolidation phase. From late 2025 to early 2026, the share increased from about 7% to over 13%, and is currently around 13.2%, moving sideways. In the short term, the trend of waning risk appetite appears to have stabilized, but the 50-day, 100-day, and 200-day moving averages are all still trending upward, indicating that the risk-averse tendency has not yet reversed.

From a market structure perspective, if the share again surpasses 14%, it could be interpreted as a signal that risk aversion is re-strengthening; if it falls below 12%, it may indicate that funds are flowing back into crypto assets. Currently, the market is closer to a cautious wait-and-see stage rather than a full “risk appetite” mode. The recovery of DeFi’s TVL has significance beyond the numbers themselves, but whether this recovery can extend into an expansion phase ultimately depends on actual usability and regulatory environment.

Article summary by TokenPost.ai 🔎 Market interpretation DeFi TVL has recovered to $950 billion, assessed as driven by actual usage rather than just liquidity inflows. The core trend is a shift away from past yield-focused speculation, redefining DeFi as financial infrastructure.

💡 Strategic points The stablecoin share (currently about 13.2%) is a key indicator for judging market risk direction. Surpassing 14% may signal a shift toward risk aversion, while below 12% may indicate a return to risk appetite. Increased activity on the Ethereum network is also noteworthy as a sign of actual usage recovery.

📘 Terminology explanation TVL: Total assets locked in DeFi Self-custody: Personal management of assets and private keys Stablecoin: A cryptocurrency with low price volatility, serving as core infrastructure for payments and loans

💡 Frequently Asked Questions (FAQ)

Q. Why is the recovery of DeFi TVL important? The significance of this TVL recovery lies in the fact that funds are not pursuing short-term gains as in the past, but are based on actual service usage. This indicates that DeFi is evolving into a sustainable financial infrastructure rather than a speculative market.
Q. Why is the stablecoin share an important indicator? The stablecoin share is a core indicator of market risk preference. An increase is seen as a preference for safe assets (risk aversion), while a decrease suggests expanding risk asset investments (risk appetite).
Q. Why is the Japanese case attracting attention in the DeFi market? Japan has built a system that allows ordinary users to access DeFi by combining stablecoins pegged to the yen (JPYC) with user-friendly wallet infrastructure. This is regarded as a practical and feasible DeFi expansion model within a regulatory environment.

TP AI Notice: This article uses a language model based on TokenPost.ai for summarization. The main content of the body may be omitted or may differ from actual facts.