Between 21 and 25 July, the total market capitalization of Stablecoin rose by $ 4.505 billion to $ 265.22 billion, an extension of 1.73%. In the same time frame, the total value (TVL) in Defi fell from $ 140.804 billion to $ 135.934 billion, a discharge of 3.46%.
Although the increase in Stablecoin’s range can be interpreted as a sign of incoming capital, the simultaneous decline in Defi TVL tells us that the new liquidity is not used; It waits.
Ethereum saw its TV fall 2.53% for the past 24 hours, despite leading a 7-day climb of more than 7.5%. The price remained relatively stable for the three days, jumped to $ 3,707 on July 24 and returned to $ 3,565 on July 25, with a net profit of only 0.78%.
Price stability combined with a falling TVL and expansion of the Stablecoin basis indicates a shift in the market. Capital seems to rotate from revenue deficial positions in liquid, passive stablecoins.
The TVL / Stablecoin food ratio, an effective proxy for capital efficiency on chains, has fallen from 0.535 to 0.513 for the past three days. The drop suggests that on-chain capital becomes more risk-aging. With fewer stablecoins that are implemented in Defi protocols and more inactive in portfolios, bridges and exchange calendars, traders seem to prepare for a new volatility.
This caution can clearly be seen in data from Defi Lama. Ethereum accounts for $ 81.094 billion in total Defi TVL and $ 133.008 billion in stablecoins, which yields a TVL/Stablecoin ratio of 0.61, close to the market average. However, a deeper look at other chains shows a fragmented landscape with sharp differences in capital use.
Ethereum -Turers, Tron Hogards
Tron wears $ 81,989 billion in stablecoins (almost a third of the entire market), but only $ 5,766 billion in TVL. That ratio of 0.07, the lowest of the top chains, confirms the role of Tron as a stablecoin bridge and settlement layer instead of a yield-driven ecosystem. The new $ 4.5 billion in Stablecoins that was introduced this week the blood circulation seems to have mainly landed on Tron, Ethereum and a few L2s such as base and arbitrum.
Arbitrum and base showed more balanced implementations. Base has $ 4,171 billion in stablecoins and $ 4.164 billion in Defi TVL, almost a 1: 1 ratio. Arbitrum follows closely with $ 3,492 billion in stables and $ 2,889 billion in TVL, which means that capital is actively used. Solana and BSC, on the other hand, maintain moderate implementation relationships of 0.84 and 0.61 respectively. Both, however, saw sharp one -day drawings in TVL, where Solana lost no less than 10%.
| Chain | 1D change | 7D change | Defi TVL | Stall |
|---|---|---|---|---|
| Ethereum | +1.36% | +8.11% | $ 82,483b | $ 132,796b |
| Solana | -7.34% | +1.92% | $ 9,805b | $ 11,617b |
| Bitcoin | -2.79% | -3.37% | $ 6.77b | – |
| BSC | -1.48% | +4.18% | $ 6,769b | $ 11,096b |
| Tron | +1.04% | +0.41% | $ 5.82 billion | $ 82.188b |
| Base | +0.47% | +3.45% | $ 4,213b | $ 4,137b |
| Arbitrum | +1.59% | +5.87% | $ 2,915b | $ 3,464b |
| Sky | -1.59% | -6.41% | $ 2,079b | $ 979.18m |
| Hyperliquid L1 | -4.45% | +4.32% | $ 2,043b | $ 4,984b |
| Avalanche | +0.90% | +7.79% | $ 1,893b | $ 1,737b |
Sui and Avalanche show the reverse pattern, with more TVL Dan Stablecoins. Sui has a 2.11 TVL/Stables ratio, which suggests that capital is held at the chain in volatile or indigenous assets such as LSTs, bridged tokens or RWAs instead of in stablecoins. Avalanche also shows a slight over-indexation in TVL versus stable liquidity.
The combination of growing stablecoin range and falling TVL is contraindative in a healthy, bullish market, where Stablecoin mints are often a forerunner to provide deployment and leverage. The change that we have seen in the past three days means that traders have become slightly riskier.
This can be due to various factors. Defi -credit rates between protocols remain low, reducing the attraction of stablecoin transactions. Relaxing on Perps and repairing positions can spill in Defi TVL. Larger capital pools can also wait for new opportunities to implement.
Stablecoin Dominance Data supports this interpretation. With USDT with 61.80% of the total Stablecoin market, capital consolidates in the most liquid, CEX-friendly unit. This choice strengthens the position that large holders keep their options open. They want to be able to leave quickly or run in other assets such as BTC/ETH/Perps without slippery.
While Defi TVL fell nearly $ 5 billion for three days, ETH managed to float, even with a modest profit. This decoupling means that ETH price promotion is more powered by structural factors than the growth of the organic defi.
That said, if vain stablecoins on Ethereum and L2S ultimately reverse in Defi through repetition, LSTs or new stimulation programs, ETH could benefit as the demand for blockspace rises and striking reimbursements increase. Conversely, if Stablecoin Capital is not implemented and ETH does not have its current reach, the lack of deficial support support can become a tail wind for ETH/BTC rotation.
The mail capital shifts to Stablecoins while Defi protocols Bleed TVL first appeared on CryptoSlate.
