- IOTA recorded a sharp uptick in activity, contributing significantly to DeFi’s renewed liquidity.
- VaultBridge’s Katana USDC saw increased usage, marking a notable rise in bridged stablecoin deployments.
- Hyperliquid and Conflux each posted over 30% growth amid sustained demand for non-Ethereum DeFi alternatives.
Capital inflows into decentralized finance (DeFi) have accelerated sharply, with a total of over $4 billion entering the sector in recent sessions. This sharp uptick in liquidity coincided with strong performance across several key blockchain networks. Notably, IOTA, Katana’s VaultBridge USDC, Conflux (CFX), and Hyperliquid (HYPE) have emerged as the most active chains, each recording over 30% growth. These movements reflect an ongoing shift in DeFi participation, with investors rapidly reallocating capital toward non-Ethereum protocols and innovative liquidity layers.
The rally began during the start of the week, driven by increased smart contract usage and on-chain activity across alternative layer-1 and layer-2 ecosystems. Market data shows strong wallet creation and rising total value locked (TVL), especially on platforms that offer bridging solutions and low-fee trading environments. The developments also coincide with a wider market rebound that has pushed several DeFi-focused tokens into higher valuations.
IOTA Registers Significant Uptick in DeFi Participation
Among the top gainers, IOTA experienced a steep rise in on-chain value activity, positioning itself as a central player in DeFi’s rebound. The chain saw increased smart contract deployment and dApp interaction throughout the month. These patterns indicate rising user adoption in IOTA’s ecosystem. Transaction throughput also grew, suggesting greater retail and developer participation. Analysts attribute part of this growth to its focus on lightweight architecture and scalability improvements.
Wallet activity rose as well, with data revealing a sharp climb in unique user addresses across IOTA-linked platforms. With this expansion, IOTA has outpaced several older DeFi networks in user engagement and deployment. However, sustained performance will likely depend on continued liquidity inflow and project utility.
VaultBridge’s USDC on Katana Surges in Usage
In parallel, VaultBridge’s bridged USDC on Katana recorded one of the most noticeable rises in the DeFi space. The stablecoin’s usage increased considerably, reflecting growing demand for bridged assets on scalable networks. Over the past weeks, the token has featured prominently in cross-chain liquidity pools and yield-generating protocols.
Notably, the Katana platform also saw a rise in unique depositors and transaction volumes. These developments appear to stem from cost-efficient bridging and faster settlement times. The increase in USDC volume has coincided with higher liquidity availability across the broader Katana ecosystem.
Conflux and Hyperliquid Post Robust Growth Metrics
Conflux (CFX) and Hyperliquid (HYPE) also posted strong weekly gains, with both networks growing more than 30% in core DeFi indicators. Conflux benefited from developer traction and its positioning in cross-border decentralized finance, especially in Asia-based markets. The network’s TVL grew significantly as dApps attracted both liquidity providers and stablecoin transactions.Meanwhile, Hyperliquid recorded a notable jump in derivatives-based DeFi volume. Its ecosystem attracted traders looking for high-throughput execution with minimal slippage. This increase in market activity pushed Hyperliquid’s on-chain volumes higher, placing it among the fastest-growing non-EVM protocols this quarter. Together, these trends illustrate a sharp rise in interest beyond dominant blockchains.