DeFi Total Value Locked Rose 38% in Third Quarter as Tokenized Assets Grew

Decentralized finance protocols recorded a 38% increase in total value locked (TVL) during the third quarter of 2026, reaching $95 billion. The rebound follows three consecutive quarters of contraction that saw TVL fall from a peak of $156 billion in the third quarter of 2025 to $69 billion by June 2026. The turnaround was supported by monthly increases of 7% in July, 15% in August, and 11% in September.

Ethereum continues to represent the majority of locked capital, accounting for approximately $53.7 billion. Other platforms also recorded notable expansion, with Monad's TVL rising 183% over the quarter, while the Robinhood Chain accumulated more than $1 billion in deposits following its July deployment.

Tokenized equities in decentralized protocols also expanded, with Token Terminal data showing roughly $252 million in tokenized stocks deposited across platforms, up from minimal levels at the start of 2025. Uniswap hosted the largest share with $82.1 million across its v3 and v4 pools, followed by Kamino Lend at $51.3 million and Pendle at $33.8 million.

Traditional financial institutions have also maintained engagement with the sector. Morgan Stanley established a Digital Asset Lab managed by its innovation group across New York, Scotland, and India to test tokenization, stablecoins, electronic trading, and decentralized applications in response to demand from its wealth management client base.