The decentralized finance (DeFi) sector has reached a total value locked (TVL) of $138 billion as of July 18, 2025, marking a 57% increase since April and the highest level in three years. Ethereum is at the forefront of this resurgence, with significant contributions from lending, liquid staking, and restaking sectors. Institutional interest is on the rise, particularly from Wall Street, which is increasingly involved through tokenized real-world assets. Key DeFi players like Aave and Lido DAO are driving growth, with Aave surpassing $50 billion in cumulative deposits and Lido DAO securing over $32 billion. Despite being below its peak from four years ago, the DeFi space is showing strong recovery signs, fueled by Ethereum's infrastructure and innovation.