Flow Sees Strongest Quarter Yet, Driven by DeFi Growth: Messari Report

The Flow blockchain ecosystem has achieved remarkable growth, with its DeFi total value locked (TVL) soaring by 46% to reach $68 million in the second quarter of 2025. This growth is largely attributed to the increased popularity of stablecoins and decentralized finance, marking a significant shift from its original focus on NFTs.

Key Takeaways

Flow's DeFi total value locked (TVL) surged by 46% to $68 million in Q2 2025.
Interest in stablecoins, particularly PayPal’s PYUSD, grew significantly, marking a 211.9% increase.
Developer activity skyrocketed with a 473% rise in smart contract deployments.
Average daily transactions on the Flow network increased by 602%, reaching 40.1k.
Flow is successfully transitioning from its NFT origins to a more focused DeFi strategy.

Flow Sees Strongest Quarter Yet, Driven by DeFi Growth: Messari Report

Main Content

The Flow blockchain is rapidly evolving, expanding its DeFi ecosystem, which has recently shown significant growth with its total value locked (TVL) increasing by 46% in the last quarter, reaching $68 million. Once viewed merely as an underpinning for NFTs, Flow (FLOW) is making a noteworthy comeback. According to a report published by Messari on August 21, 2025, this was Flow's strongest quarter to date.

This surge in TVL is primarily fueled by advancements in stablecoins, liquid staking, and decentralized finance (DeFi) rather than its initial NFT base. Of particular significance is the remarkable rise in interest surrounding stablecoins, with PayPal’s PYUSD experiencing a 211.9% quarter-on-quarter growth, bringing its supply to $26.2 million, thus making it the leading stablecoin on the Flow network.

Moreover, there has been a notable increase in developer engagement, evidenced by a striking 473% increase in the deployment of smart contracts. The month of April was particularly notable, with 45,239 contract deployments recorded. Additionally, user engagement on the Flow platform surged, as daily transactions increased by a staggering 602%, reaching an average of 40.1k transactions following the integration with LayerZero.

This rise in activity indicates that Flow has effectively transitioned from its original focus on NFTs, which began with its launch in 2020 by Dapper Labs—the creators of the Ethereum-based CryptoKitties NFTs. Initially designed to alleviate congestion caused by CryptoKitties on the Ethereum network, Flow aimed to serve as a layer-1 blockchain capable of supporting a wide array of consumer dApps.

Although Flow initially thrived during the early NFT boom, securing partnerships with major entities like Disney, the NFL, and the NBA, the waning interest in digital collectibles led to a strategic pivot. Now, Flow is concentrating more on developing its DeFi capabilities, positioning itself as a competitive player in the blockchain space.