Decentralized Finance Surpasses Expectations with Institutional Growth

Decentralized finance has undergone significant transformations in recent years, with the rise of institutional participation and the integration of real-world assets (RWAs) marking a major shift.

The growth of decentralized finance can be attributed to various factors, including Total Value Locked (TVL), composability, and changes in user behavior. TVL measures the total value of assets locked on DeFi protocols, which has been steadily increasing since 2026.

Composability, or the ability to combine different DeFi protocols, has also played a crucial role in the growth of decentralized finance. This feature allows users to create complex financial products by connecting various protocols, making it easier for institutions and individuals to participate in the ecosystem.