The decentralized finance (DeFi) landscape continues to evolve at a rapid pace, with Ethereum reaffirming its dominance in the sector. According to data from DeFiLlama, Ethereum-based decentralized exchanges (DEXs) recorded a staggering $1.643 billion in trading volume over the past 24 hours — the highest among all blockchain networks.
Trailing behind, Solana secured the second position with $1.37 billion in DEX volume, followed by BNB Chain at $978 million. This clear leadership highlights Ethereum’s robust ecosystem, deep liquidity, and continued trust from traders and developers alike.
Ethereum’s DeFi Ecosystem Strengthens
Beyond trading volume, Ethereum also leads in generating value for protocol contributors. Over the same 24-hour period, Lido emerged as the top revenue-generating DeFi protocol on Ethereum, collecting $1.45 million in fees. This was driven by strong staking demand amid growing institutional interest in ETH liquid staking derivatives (LSDs).
Following Lido:
- Sky generated $950,000
- Aave earned $710,000
- Uniswap, one of the most widely used DEXs, collected $590,000
These figures underscore not only user activity but also the sustainable economic models powering leading DeFi protocols on Ethereum.
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Why Ethereum Still Dominates DeFi
Despite rising competition from high-speed, low-cost Layer 1 blockchains like Solana and Avalanche, Ethereum maintains its edge due to several key factors:
1. Network Effects and Liquidity Depth
Ethereum hosts the largest concentration of liquidity in DeFi. Major tokens, stablecoins, and yield-generating protocols are primarily deployed here first. This creates a self-reinforcing cycle: more liquidity attracts more users, which in turn draws more capital.
2. Security and Decentralization
As the most battle-tested smart contract platform, Ethereum offers unparalleled security. Its extensive validator set and mature consensus mechanism make it the preferred choice for risk-averse institutions and large-scale DeFi deployments.
3. Ongoing Scalability Upgrades
With the full rollout of rollups like Arbitrum, Optimism, and zkSync Era — collectively known as Layer 2s — Ethereum is solving its scalability challenges. These solutions offer near-instant transactions at a fraction of mainnet costs while inheriting Ethereum’s security.
This hybrid architecture allows Ethereum to scale without compromising decentralization — a critical balance in the long-term viability of public blockchains.
Market Sentiment and Broader Crypto Trends
While on-chain metrics shine, macroeconomic conditions are also influencing investor behavior. Strong U.S. non-farm payroll (NFP) data released in June indicated resilient economic growth despite ongoing tariff pressures. As a result, expectations for a Federal Reserve rate cut in July have significantly cooled.
This shift has impacted financial markets broadly:
- The 10-year U.S. Treasury yield rose to 4.35%
U.S. equity indices climbed:
- Dow Jones Industrial Average (DJIA) up 0.77%
- S&P 500 gained 0.83%, closing at 6,279
- Nasdaq Composite surged 1.02%, hitting a new high at 20,601
- The China Golden Dragon Index rebounded by 0.4%
Notably, the strong NFP report also boosted global risk appetite. The GBP/JPY pair rose Thursday as investors rotated out of traditional safe-haven assets like the Japanese yen.
Bitcoin Approaches All-Time High
In cryptocurrency markets, Bitcoin (BTC) extended its upward momentum on Friday, July 4, briefly surpassing $110,500** — just $1,000 away from its all-time high of $120,000. At the time of writing, BTC had pulled back slightly to trade around **$109,483, still up nearly 1% on the day.
Interestingly, some analysts note that rising bearish sentiment following the breach of $110K could actually fuel further gains — a contrarian signal often observed in mature markets.
“Bitcoin’s price action reflects growing institutional confidence,” said a market strategist. “We’re seeing less panic-driven selling and more strategic accumulation near key resistance levels.”
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Key Core Keywords:
- Ethereum DEX volume
- DeFi trading volume
- Ethereum DeFi protocols
- Lido fees
- Bitcoin price surge
- Solana DEX volume
- BNB Chain DeFi
- Uniswap trading
Frequently Asked Questions (FAQ)
Q: Why is Ethereum still leading in DEX trading volume?
A: Ethereum leads due to its deep liquidity pools, established user base, strong security model, and extensive support from Layer 2 scaling solutions that reduce transaction costs while maintaining decentralization.
Q: Which DeFi protocol earned the most fees on Ethereum recently?
A: Lido topped the list with $1.45 million in fees over 24 hours, driven by high demand for liquid staking of ETH, allowing users to earn staking rewards while retaining tradable tokens.
Q: How did macroeconomic data affect crypto markets?
A: Strong U.S. jobs data reduced expectations for near-term Fed rate cuts, pushing bond yields higher. However, it improved overall risk sentiment, benefiting both equities and cryptocurrencies like Bitcoin.
Q: Is Bitcoin likely to reach $120,000 soon?
A: With BTC already within $1,000 of its all-time high and momentum building, many analysts believe a breakout is possible if institutional buying continues and macro conditions remain stable.
Q: What role do Layer 2 networks play in Ethereum's DeFi dominance?
A: Layer 2 networks such as Arbitrum and Optimism process transactions off-chain but settle them securely on Ethereum. This dramatically lowers fees and increases speed, making DeFi more accessible without sacrificing security.
Q: How does Solana compare to Ethereum in DeFi activity?
A: Solana offers faster and cheaper transactions, attracting retail traders and new projects. However, it lags behind Ethereum in total value locked (TVL), protocol diversity, and institutional adoption.
The convergence of strong on-chain fundamentals and favorable market dynamics positions Ethereum and Bitcoin for potential new milestones in the second half of 2025.