TVL Surge: The DeFi Projects Winning Big in 2025

Amid a volatile crypto market, a handful of protocols are bucking the trend. Here’s what’s fueling the sharp rise in TVL, and why experienced teams and trusted integrations matter more than ever.

While much of the crypto space continues to wrestle with weak funding rounds, user skepticism, and a painful hangover from past rug pulls, some projects are managing to break away from the pack. Total Value Locked (TVL)—a key metric of DeFi health—is on the rise across a few standout protocols, thanks to a mix of product innovation, smart integrations, and battle-tested teams. 

As of May 2025, the TVL across all decentralized finance (DeFi) protocols and blockchains is approximately $85–90 billion, with Ethereum alone accounting for over $46 billion, more than half of the market. Likewise, Bitcoin’s Liquid Network surpassed $3.27 billion in TVL, reflecting growing interest in tokenized real-world assets on Bitcoin

Let’s take a look at the most notable projects that have seen meaningful TVL growth in the last few months—and unpack why they’re surging when so many others are stuck in the mud.

Spark Protocol Nearly Doubles TVL in One Month

TVL Growth: +95.54% (now at $4.39 billion)

Spark Protocol, focused on maximizing stablecoin yields and providing transparent, efficient lending and borrowing solutions, has come out swinging in 2025. A key subDAO within the Sky Protocol ecosystem (formerly MakerDAO), Spark has become a hub for DeFi lending thanks to its freshly launched Aave vaults. The term ‘vaults’ refers to smart contract-based liquidity pools where users deposit assets (like ETH, USDC, DAI, cbBTC, etc.). These vaults are ERC-4626 compliant yield-bearing and allow users to deposit and withdraw ERC-20 tokens supported by Aave V3. They automatically manage the supply and withdrawal of assets in the Aave Protocol while enabling vault managers to take a fee on the yield earned.

What makes Spark especially powerful is its synergy with Sky. As users move funds between the two, seeking optimized yield opportunities, TVL climbs on both ends. With integrations that prioritize safety and efficiency, it’s no surprise Spark is leading this cycle’s DeFi conversation.

Sky Protocol is Reinventing MakerDAO with Cross-Chain Yield

TVL Growth: +55.59% (now at $5.86 billion)

Sky Protocol is a major decentralized finance (DeFi) platform that evolved from MakerDAO, one of the earliest and most influential DeFi projects. Launched in 2024, Sky is showcasing that legacy doesn’t mean outdated. USDS is the protocol’s flagship stablecoin, upgraded from DAI. It is soft-pegged to the US dollar and can be minted by depositing approved collateral into smart contract vaults (formerly called CDPs). With high-yield USDS (now boasting 1.8 billion tokens in circulation), Sky is attracting new deposits by offering an eye-catching 12.5% APY.

But it’s not just about yield. Sky’s expansion across chains like Solana and Base, combined with strategic partnerships, especially with Spark Protocol, has enabled a layered ecosystem where capital flows freely and rewards are competitive. Deflationary tokenomics for the SKY token adds incentive for long-term holders. Moreover, users can withdraw their supplied assets at any time, with no minimum or maximum restrictions and no liquidity lockups

SparkDEX and Flare: A 500% TVL Explosion with USDT0

TVL Growth: +500% (surpassing $60 million)

Here’s where experience really comes into play. SparkDEX , a decentralized exchange suite built on the Flare Layer 1 EVM chain, has posted extraordinary growth following its timely integration of USDT0, a cross-chain stablecoin designed to streamline liquidity between ecosystems. Since the integration, SparkDEX has added over 2,000 new users, pushed past $300 million in total trading volume, and now sees TVL growth exceeding $15 million per week. It grew from $15.9 million in February 2024 to over $80 million by February 2025, showcasing a 410% increase. 

The platform’s native analytics dashboard (sourced directly from Flare’s blockchain) offers real-time transparency, reinforcing user trust—something that’s rare in DeFi today.

Flare, a scalable Layer 1 network with a focus on interoperability, also deserves credit here. By natively supporting USDT0, Flare enables DeFi apps like SparkDEX to skip complicated bridging mechanisms, reducing risk while deepening liquidity. 

What’s fueling SparkDEX’s momentum is its direct connection to some major players in the crypto space—QuickSwap, Lunar Digital Assets , and the team behind “The Aggregated” smash hit podcast. This isn’t just a random group of names; it’s a collective with a solid track record of building credible, high-impact products. 

Solana Shows Steady Growth with Real Utility

TVL Growth: +2.41% (now at $7.22 billion)

Solana continues to prove it’s more than a memecoin magnet. Its high throughput, low fees, and growing lending ecosystem are helping it quietly attract capital. Projects like Sky deploying on Solana are also contributing to the upward trend, as cross-chain liquidity becomes more viable.

Avalanche and Tron: Smaller Gains, Still in the Game

Avalanche TVL Growth: +8.55% (now at $1.19 billion)
Tron TVL Growth: +4.97% (now at $4.91 billion)

Avalanche benefits from Ethereum compatibility and targeted ecosystem incentives, while Tron remains strong in stablecoin-driven DeFi—especially in emerging markets. Lending protocol JustLend alone has helped Tron’s numbers move in the right direction.

Why Experienced Teams Still Matter in DeFi

In a landscape riddled with smart contract exploits, flash loan attacks, and all-too-frequent rug pulls, trust has become a core value. Teams like the one behind SparkDEX and Flare, who have proven track records with QuickSwap and other respected DeFi ventures, are showing why experience and a proven track record of results isn’t optional anymore.

It’s not just about building a novel product. It’s about building one that works, earns user trust, and delivers transparent results. And that often comes down to the people behind the code. Take Roc Zacharias, for example. He’s the CEO of Lunar Digital Assets, a co-founder of QuickSwap, and has been instrumental in launching major projects like Polygon, QuickSwap, “The Aggregated” and Dogechain.

The team’s work on The Aggregated podcast and their advisory roles throughout the DeFi space also speak volumes about their visibility and influence. They’ve consistently delivered on both innovation and insight, blending product development with thought leadership. All of this gives SparkDEX a rock-solid foundation to drive trust, foster innovation, and accelerate adoption, especially within the Flare ecosystem and potentially well beyond it.

Market Reality Check: Not Everyone’s Winning

While the projects above are thriving, they’re the exception, not the rule. Many early-stage builders are struggling to raise capital, hampered by the lingering mistrust created during 2022–2023’s wave of scams and collapses. Investors are cautious, and users are hesitant to deposit funds into protocols with unproven track records or unclear tokenomics.

In this environment, hype alone won’t cut it. Protocols need utility, transparency, and a team that knows what it’s doing. Otherwise, even the best ideas are dead on arrival.

The current DeFi market may not be a bull run, but it's far from dormant. A handful of standout projects, like Spark, Sky, SparkDEX, and Solana, are showing that growth is still possible with the right mix of yield, utility, and credibility. 

For new projects looking to break through, the lesson is clear: trust, transparency, and execution will always matter more than buzzwords and branding. And with USDT0, cross-chain yield strategies, and proven teams leading the way, the next phase of DeFi might just be more stable, trustworthy, and sustainable than the last.

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