CoinWorld news, the DeFi ecosystem of Flow is rapidly growing, with DeFi TVL increasing by 46% quarter-over-quarter to 68 million USD. Flow (FLOW) was once considered a chain for NFTs that had seen better days, but it is slowly recovering. On Thursday, August 21, Messari released a report on the status of the Flow ecosystem in the second quarter of 2025. The report shows that TVL surged by 46% to 68 million USD, making it the best-performing quarter to date. The growth is increasingly driven less by collectibles and more by stablecoins, liquid staking, and DeFi. Notably, Flow has seen strong interest in stablecoins, with PayPal's PYUSD supply increasing by 211.9% quarter-over-quarter to 26.2 million USD. This makes PYUSD the largest stablecoin on the network. Meanwhile, developer activity is thriving, with the amount of smart contract deployments increasing by 473% quarter-over-quarter. April was the most active month for contract deployments, reaching a total of 45,239. More importantly, user interest has further grown, with the average daily transaction volume on Flow increasing by 602% to 40,100 transactions after the LayerZero integration. The continuously growing activity indicates that Flow has successfully shifted focus from its early NFT emphasis. Flow was launched by Dapper Labs in 2020, the creators of Ethereum (ETH) CryptoKitties NFTs, and has undergone a significant transformation. Initially, it was a response to the congestion caused by CryptoKitties on Ethereum. Flow was designed to be a layer-1 chain capable of handling large-scale consumer dApps. At that time, it caught the wave of early NFTs and established partnerships with giants like Disney, NFL, and NBA. However, the decline in interest in digital collectibles led Flow to change its strategy, placing greater emphasis on DeFi.

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