# Bitcoin and Ethereum Rally Spurs DeFi Market Growth

Funds are pouring into the decentralized finance (DeFi) market amidst a bullish run for Bitcoin (BTC) and Ethereum (ETH), pushing the Total Value Locked (TVL) to $122.4 billion, surpassing its February peak. Tron (TRX) notably soared to the fourth spot in TVL, boosted by an influx of stablecoins.

# TVL Surges 11.8% Weekly; Tron Jumps 25%

As of May 16, the total TVL in the DeFi market reached $122.8 billion, according to DeFiLlama, marking a 12% increase from the previous week’s $109.5 billion. This figure surpasses the late February high of $111.3 billion.

Ethereum (ETH) maintains its lead with $66.3 billion locked across 1,338 protocols, while Solana (SOL) follows with $10.8 billion and Binance Chain (BNB) holds third place with $6.6 billion. Tron’s (TRX) TVL growth appears to be driven by an increase in stablecoin issuance. As a chain heavily utilized for stablecoin transactions like USDT, Tron’s demand is primarily fueled by deposit and circulation needs rather than DeFi participation.

Bitcoin (BTC), on the other hand, saw its TVL decline by 1.98% to $6.33 billion, dropping it to the fifth position. Other chains like Base (+7.76%), Arbitrum (+2.81%), and Sui (SUI) (+1.61%) also showed upward trends.

# DEX Trading Volume Spikes 66.7%; BSC and Arbitrum Lead

Decentralized exchange (DEX) trading volumes surged to $104 billion over seven days, a 66.7% increase from the previous week. Binance Smart Chain (BSC) led the charge with a 118% increase to $20.2 billion, followed by Arbitrum with a 124% hike to $7.6 billion. Solana topped weekly trading volumes at $27.9 billion.

Solana’s surging DEX volume is attributed to the meme coin rally, driven by coins like BONK, WIF (dogwifhat), and MOODENG, which capitalized on low transaction fees and fast chain performance to attract massive liquidity. MOODENG surged nearly sevenfold this past week, steering the meme coin rally on Solana.

In terms of TVL to DEX trading efficiency, Solana (26.85%) and BSC (22.64%) stood out. Arbitrum, Sui (SUI), and Unichain also showcased significant double-digit increases, indicating robust market engagement.

# Derivatives Market Gains Momentum; Perps Volume Up 52%

The perpetual futures (Perpetuals) market also saw increased on-chain activity. Weekly derivatives trading volume reached $91.2 billion, a 52.41% rise from the previous week. On a 24-hour basis, volume hit $12.2 billion, rivalling spot DEX volumes. This indicates that market participants are increasingly taking on risk, expanding their positions, and showing optimism about asset prices.

# Stablecoin Market Cap Steady at $243.1 Billion

Stablecoin market capitalization remains stable at $243.1 billion, supporting liquidity in the DeFi market. Ethereum (ETH) retains a leading role with $122.8 billion, followed by Tron (TRX) with $75.6 billion in stablecoin circulation.

This week’s DeFi market highlights a broad expansion of fund inflows, with distinct growth momentum across different chains. Tron benefitted from structural strength driven by stablecoin inflows, while Solana captured short-term liquidity through rapidly increasing meme coin transactions. These trends underscore that on-chain data are influenced not just by technical metrics, but also by community sentiment, trends, and market movements.