Ethereum on-chain application TVL surpasses $300 billion, what is the network effect strengthening?

The total value locked (TVL) of on-chain applications on the Ethereum network has surpassed $300 billion. This figure not only signifies the growth of capital scale but also reflects the deep-rooted presence of real economic activities on this chain. From DeFi to stablecoins, RWA, and staking, the diversified distribution of this $300 billion is painting a picture of an increasingly mature on-chain ecosystem.

What does $300 billion mean

Understanding ecosystem maturity behind the numbers

$300 billion in TVL is more than just a milestone. These funds are actively engaged across four main areas, each representing different economic activities:

• Lending, trading, and liquidity mining in DeFi applications
• Reserves and circulation of stablecoin systems
• Asset value of RWA (Real-World Assets) on the chain
• Capital participation in staking protocols

This diversified fund distribution indicates that Ethereum is no longer just a speculative platform but a carrier of real economic activities. In comparison, according to the latest data, 1inch’s Ethereum trading volume is projected to reach $97.1 billion in 2025. Although Solana’s DEX trading volume is expected to grow by 126% in 2025, Ethereum still maintains a leading position in TVL depth and application diversity.

Why Ethereum

Leon Waidmann points out that Ethereum leads other networks in four key dimensions:

In terms of liquidity depth, the $300 billion TVL provides ample capital for various applications. The deeper the liquidity, the higher the usability and efficiency of applications.

The composability of the developer ecosystem is Ethereum’s unique advantage. Developers can quickly build new applications based on existing protocols, forming a “Lego-like” ecosystem combination. This composability reduces innovation costs.

Long-term trust record from institutional forecasts. Since 2015, Ethereum has experienced multiple market cycles, and institutional investors’ recognition of its long-term value remains relatively stable.

The robustness of user and capital reserves. Ethereum boasts the most mature user base and capital inflows, providing conditions for cold starts of new applications.

What network effects are strengthening

Positive feedback loop of ecosystem applications

A positive feedback loop is forming on Ethereum: more TVL attracts more developers, more developers create richer applications, and richer applications attract more users and capital. This is the so-called network effect.

From related news, we see that USDD’s peak TVL on Ethereum exceeded $900 million, and River stablecoin’s TVL surpassed $300 million. The growth of these stablecoin ecosystems exemplifies network effects. As infrastructure of on-chain economy, stablecoins’ development in turn promotes overall ecosystem activity.

Competition with other chains

It’s important to note that competition has not stopped. Reports indicate that Solana will become the largest developer ecosystem by 2025, with active developers reaching 10,753, surpassing Ethereum’s 8,331. Solana’s DEX trading volume is also accelerating.

However, from the perspective of TVL, Ethereum remains the absolute leader. This highlights an important difference: Solana is more attractive at the transaction layer, while Ethereum excels in capital sedimentation and application depth. They embody different ecosystem design philosophies.

Repositioning core values

Interestingly, Vitalik recently reiterated Ethereum’s core goal — not to pursue higher efficiency or higher APY, but to provide resilience and sovereignty. This creates an interesting dialogue with the growth of the $300 billion TVL: truly valuable capital not only flows into high yields but also into trustworthy, censorship-resistant, decentralized infrastructure.

Summary

The breakthrough of Ethereum on-chain application TVL past $300 billion marks the evolution of this chain from “experimental infrastructure” to a “mature economy.” This number reflects not only the scale of capital but also the ecosystem maturity, application diversity, and developer confidence.

The key points are threefold:

First, the $300 billion TVL represents deep sedimentation of real economic activities, not just speculative capital.

Second, Ethereum’s competitive advantage lies in ecosystem depth and composability, rather than transaction speed or cost.

Third, network effects are forming a positive feedback loop, but this also means competition will intensify. Future focus should be on the application innovations behind these TVLs and how Ethereum can continue attracting capital and developers while maintaining decentralization and security.