Data shows DeFi TVL shifting from trading platforms to lending and staking infrastructure driven by collateral reuse models.

Decentralized finance has entered a new phase as capital allocation patterns continue to change across protocols. Recent data shows total value locked concentrating within infrastructure-focused platforms. This movement reflects how digital asset holders now deploy capital, and it also reshapes how DeFi growth is measured across networks.

DeFi TVL Concentrates Around Infrastructure Protocols

The total value locked distribution has shifted toward lending, liquid staking, and restaking platforms. In earlier market cycles, capital spread across decentralized exchanges and yield platforms. These earlier protocols relied on frequent transactions and continuous user activity. Current data shows fewer categories capturing the most locked value.

DeFi TVL Has Shifted From Activity to Balance-Sheet Infrastructure

The comparison highlights a structural shift in where DeFi TVL concentrates. In 2021, top protocols were diversified across DEXs, CDPs, and yield aggregators. By 2025, TVL is overwhelmingly concentrated in… pic.twitter.com/62dXRuZA1u

— CryptoRank.io (@CryptoRank_io) December 28, 2025

Lending protocols now receive a large share of DeFi deposits across multiple chains. Liquid staking platforms also attract users seeking yield with asset flexibility. Restaking protocols have expanded quickly by offering additional returns. Together, these categories now dominate reported TVL across decentralized finance.

Capital Efficiency Shapes Lending and Staking Growth

Lending protocols rely on structural rules that increase reported locked value. Borrowers must deposit assets exceeding their borrowed amounts. This requirement raises locked balances beyond actual loan sizes. As a result, TVL figures rise without equal capital inflows.

Reusable collateral allows deposited assets to support multiple positions. Users may borrow against deposits and redeposit borrowed assets. This loop increases recorded balances across lending pools. These mechanics remain common within major lending platforms today.

Liquid staking uses tokenized representations of staked assets. These tokens remain tradable while underlying assets earn validator rewards. Restaking builds on this structure by reusing staked assets. This process allows capital to generate multiple yield streams simultaneously.

Shift Away From Activity-Driven Protocols

In 2021, decentralized exchanges held a larger share of DeFi value. Yield aggregators also attracted capital through active strategies. These platforms depended on trading volume and frequent user interaction. TVL levels shifted with market sentiment and transaction demand.

Current infrastructure protocols allow passive capital deployment for extended periods. Users can earn yields without constant position management. This structure reduces the need for repeated transactions. Capital remains locked while still generating returns across layers.

This transition marks a change in how DeFi usage is measured. TVL growth now reflects balance sheet mechanics rather than trading activity. Infrastructure protocols support longer holding periods. These features define the present distribution of decentralized finance capital.

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Market Leaders Drive TVL Concentration

Aave continues to lead lending protocol TVL across major networks. Its structure supports collateral reuse and borrowing loops. These features contribute to steady balance growth. Other lending platforms follow similar designs with smaller scale.

Lido Finance remains the leading liquid staking provider. It enables users to stake assets while keeping liquidity. Restaking protocols build on liquid staking positions. This layered approach attracts capital seeking yield efficiency.

CryptoRank.io data shows these platforms capturing the most new locked value. The trend persists across multiple reporting periods. Infrastructure protocols now define where DeFi capital accumulates. This pattern continues to shape the decentralized finance landscape.

The post DeFi TVL Shifts Toward Lending, Liquid Staking and Restaking as Infrastructure Grows appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ December 29, 2025 6:20 am