Tokenized Stocks Drive Record DeFi Liquidity Surge

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Locked liquidity in decentralized finance (DeFi) applications hit a record $270 billion in July, fueled largely by the rapid rise of tokenized stocks. According to blockchain analytics platform DappRadar, the total value locked (TVL) in DeFi protocols jumped 30% month-over-month, signaling renewed investor confidence in blockchain-based financial tools.

DeFi. Short for Decentralized Finance. Refers to financial applications that run on blockchain networks without relying on traditional banks or intermediaries. The biggest boost came from tokenized stocks, which are blockchain-based representations of traditional company shares. Active wallets holding tokenized stocks skyrocketed from roughly 1,600 to more than 90,000 in just one month, pushing their total market capitalization up by an impressive 220%.

The surge wasn’t limited to DeFi. Non-fungible tokens (NFTs), which are unique blockchain assets that verify digital ownership, also saw a strong rebound. NFT trading volumes climbed 96% in July to $530 million, while the average NFT sale price doubled to around $105. This uptick reflected a broader return of interest from collectors and traders.

Interestingly, user activity data showed that NFTs slightly overtook DeFi in engagement. Of the 22 million daily active crypto wallets, about 3.85 million interacted with NFT decentralized applications (dApps) in July. Ethereum-based marketplace Blur dominated the space, capturing up to 80% of daily NFT trading volume. OpenSea remained the most active platform in terms of users, with around 27,000 traders, while Zora gained traction through its creator-focused layer-2 network and low-cost minting via its $ZORA token.

Major brands continued to embrace blockchain innovation. Nike’s.SWOOSH initiative teamed up with EA Sports to launch virtual sneaker drops, while Louis Vuitton, Rolex, and Coca-Cola in China rolled out authentication and collectible projects. However, despite July’s momentum, NFT volumes remain well below early 2025 levels. Trading activity, although up 36% from June’s $389 million, still lags behind January’s $997 million peak.

Collectors also showed renewed interest in “OG” NFT projects such as CryptoPunks. Data from NFT Floor Price revealed that the Ethereum-based collection rose more than 25% in value over the past month. Nine of the top 10 NFT sales in the past 24 hours were CryptoPunks, with the lone exception being a digital artwork by Web3 creator Beeple.

Even with this revival, the NFT market remains far from its 2021 highs, when monthly volumes reached tens of billions. DappRadar’s 2024 industry review reported a 19% year-over-year decline in NFT trading volume and an 18% drop in sales count, while CryptoSlam recorded $2.82 billion in sales for the first half of 2025, down 4.6% from late 2024.

July’s numbers point to a possible turnaround, particularly with tokenized stocks proving to be a powerful growth engine for DeFi. Whether this trend leads to sustained mainstream adoption will depend on market stability, regulatory clarity, and continued innovation in blockchain finance.