Ethereum's DeFi Market Share Slides from 63.5% to 54% as Rival Chains Carve Out Specialized Roles

Ethereum's share of total DeFi TVL has compressed nearly 10 percentage points since the start of 2025, falling from 63.5% to roughly 54% as of May 7, according to DefiLlama. At $45.4 billion in absolute TVL, Ethereum's position remains dominant in raw size — but the competitive map has fundamentally restructured around it.

The chains absorbing share have each staked out a distinct function rather than competing head-on. BNB Chain ($5.55B TVL, $739.6M in 24-hour DEX volume) runs on Binance distribution and PancakeSwap routing, after PancakeSwap volume surged 539.2% QoQ to $392.6B in Q2 2025. Tron operates as a dollar-settlement rail with $89.6B in stablecoins — 97.86% USDT — but only $55.5M in daily DEX volume. Bitcoin's DeFi TVL reached $5.34B, up 13.4% in 30 days, driven by collateral and lending utility rather than trading. Base, Coinbase's OP Stack L2, holds $4.58B in TVL and…