Research Shows Confidence in DeFi as Capital Rotates to RWAs and Stablecoins

On Monday, the TVL of the DeFi sector sat at $83 billion, down 1.2% over the past 24 hours. But this does not mean that investors are pulling out of the decentralized market.

On-chain data shows that DeFi users have gradually shifted their attention to stablecoins and real-world assets (RWAs).

The stablecoin market, for example, holds a market cap exceeding $323 billion, a 0.17% increase over the past week. The trend suggests liquidity remains within the ecosystem, with a preference for dollar-denominated assets rather than exiting risk entirely.

Real-World Assets See Sustained On-chain Demand

Real-world asset protocols continue to attract steady inflows across multiple platforms. Notably, Securitize holds $4.59 billion, up over 5% in 7 days and nearly 10% over 30 days.

Meanwhile, Ondo Finance records $3.71 billion, with 0.41% weekly and 3.53% monthly growth.

Similarly, BlackRock BUIDL reached $3.23 billion, up 8.01% in 7 days.

The broader RWA market shows $26.97 billion in market cap and $28.96 billion in on-chain market cap.

Shift Toward Crypto Native Yield in Stablecoin Markets

Stablecoin flows indicate stronger demand for crypto-native yield products than for traditional fiat-backed tokens. Ethena USDe rises 9.29% in 7 days with a $4.35 billion market cap, while Ethena protocol TVL climbs to $5.37 billion, marking 16.91% weekly growth.

USDG increases 9.58% to $2.913 billion, and USD1 adds 2.27%, while USDC declines 1.23% and USDT maintains dominance at 58.65%.

Liquidity Rotation Across DeFi Ecosystems

Ethereum remains the leading chain with $44.1 billion in TVL, holding about 53% market share. That said, its dominance is slowly easing as liquidity spreads across alternative ecosystems and higher-yield sectors.

This pattern also shows up across other L1 and L2 networks, where performance is mixed as capital moves between ecosystems. For example, Avalanche records strong weekly gains, while Base is up 7.1% in TVL, suggesting more of a reallocation rather than net outflows from DeFi.

Overall, the data point to a DeFi market that remains stable at a macro level, with capital rotating toward structured yield products, tokenized real-world assets, and more efficient stablecoin designs.