One of the most dynamic contestants in decentralized finance (DeFi) has been Flare Networks, whose TVL in DeFi has increased by an impressive 400% year over year. That unmistakable growth suggests something is afoot with the project, positioning Flare Networks as a likely tiled next big thing in DeFi and perhaps a direct rival to service providers like Chainlink and the Graph. What’s most exciting about the project, however, is not just the growth of its TVL, but how this uptick encompasses a giddy user engagement with the platform. The attention of both retail users and institutional players has been captured by Flare Networks. Its growth appears to be increasing even more lately, and it seems to have a user base that is both solid and large. All that leaves us with a DeFi ecosystem that continues to attract new users and new capital in a way that many other DeFi ecosystems can only envy. To those who listened to the Flare Fair space, this is the growth dashboard from @intotheblock I was yapping about Key takeaways ✓ long-term steady growth of DeFi TVL in @FlareNetworks ✓ majority TVL is currently in RWAs and liquid staking ✓ yield segment appears to have… https://t.co/3BEYSdCdtl pic.twitter.com/Njujb24W30 — amiiiii (@_WaterAmi) February 13, 2025 Steady Growth in TVL, with Strong Potential in RWAs and Liquid Staking Flare Networks has one of the most impressive growth stories in decentralized finance over the past year. Not that long ago, people in the space could only look on with envy as total value locked in various DeFi platforms soared. But TVL growth has now more than joined the party, as the key health metric for DeFi protocols has exploded from under $5 million last summer to over $72.6 million today. The coda for this story of robust growth? Flare’s TVL seems to be in no danger of slowing down, as the efficiency, potential, and elsewise health of the platform clearly have more users putting their collateral to use within the ecosystem. With over 400% yearly TVL growth, @FlareNetworks ' DeFi ecosystem is becoming one to watch Our latest free dashboard will help you do so https://t.co/qpXzfbkXsf pic.twitter.com/mkCBTX6HIq — IntoTheBlock (@intotheblock) February 13, 2025 At present, most of the total value locked in on Flare Networks is found in real-world assets and liquid staking. These two segments are now part of the rapidly growing DeFi universe. RWAs are the next big thing in DeFi, and at Flare, we are leading the way in AI-regulated RWAs on the blockchain. By minting RWA and liquid staking-enabled smart contracts, we are ramifying DeFi into an even broader dimension. This is doing two things for us: 1. It’s giving us a broader user base in DeFi, including institutional fiat investors who typically don’t deal in crypto. 2. It’s providing use cases for the Flare utility token (FLR). 1…2…3…KABOOM! @FlareNetworks 's metrics have skyrocketed! 50k daily active addresses 1.000.000 daily transactions Compare multiple metrics w/ @routescan_io and follow for more! pic.twitter.com/04dQRvfe6e — Routescan | The Multichain Explorer (@routescan_io) February 13, 2025 A major growth engine for Flare is liquid staking, which allows users to stake tokens without locking them up. Instead, they are free to use their assets while still participating in the staking process. This phenomenon has become increasingly popular, as it allows users to earn staking rewards without losing access to the assets themselves. That being said, Flare does have a non-limited version of liquid staking under which a user could have their staking rewards and tokens staked in DeFi, too, with the latter without access and using the assets. The way TVL is growing in these areas seems to indicate that Flare is trying to become a more sophisticated, advanced hub for DeFi applications. By going after RWAs (real-world assets) and liquid staking, they’re accommodating a huge range of potential users that could build on or use DeFi applications in their everyday lives—everything from retail to institutional customers. And as DeFi matures, you can’t rule out the use cases moving into the mainstream. Yield Opportunities and the Path to Further Expansion Yet another chief engine of growth for Flare Networks is now found in the promising yield segment. Yield farming and staking have become centerpieces of DeFi. They allow users to earn rewards, and by doing so, they have become essential to the functioning of DeFi platforms. These two activities have allowed Flare to capture a tiny bit more liquidity (it was around $80 million in total value locked last I checked), and the firm claims that yield farming and staking activities on its platform will eventually scale up massively. When they do, they will be offering returns that are by design far more attractive and risk-adjusted than what you might find elsewhere in DeFi. Besides the rise in total value locked, Flare’s user activity has been nothing short of astonishing. The platform now finds itself with about 50,000 daily active addresses, a number that prompts much more than a casual fist bump. These users are not just there for show; they partake in the ecosystem in meaningful ways. Staking is one part of it, but if we throw yield farming into the mix, we might have a healthy little ecosystem here. Wait. What? I feel like staking and yield farming are part of the same activity. Still, if Flare were to distinguish between those two things, it mightn’t be a bad sign for the platform. The steady rise in both active users and transactions reveals Flare’s increasing importance in the DeFi space. As the platform keeps innovating and rolling out new features, we should see its daily user metrics continue to rise, fueling further growth in both its TVL (total value locked) and overall ecosystem activity. Flare Networks in 2025 and Beyond When we gaze into the future, Flare Networks appears to be on a seemingly unstoppable path toward upward success in the DeFi sector. The unabated growth in TVL, active users, and daily transactions suggests that the platform is becoming a more prominent cornerstone of the decentralized finance ecosystem. With RWAs and liquid staking as its mainstays and exciting yield opportunities as its main lure, Flare is pushing deeper into the DeFi territory that promises to deliver the further expansion of its platform. Additionally, Flare is channeling an intensifying focus onto the fusion of traditional finance and decentralized applications, deploying the latter in the form of tokenized RWAs. This makes Flare a network that is, in my eyes, thinking about the future—our future—one in which we might want to increasingly interact with the DeFi solutions being built today. As for where Flare’s increasing visibility might take it, I consider the next segment to be a significant one, given how punishing market conditions have been for crypto institutions over the past year. Flare Networks is an event to keep an eye on as we move deeper into 2025. The DeFi ecosystem on Flare is certainly on the upswing, with an increase in total value locked (TVL) of 400% and a rapidly building user base. For anyone closely observing the DeFi landscape, Flare represents a key platform that is in the midst of capturing new opportunity in the decentralized finance sector. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: adhist19/ 123RF // Image Effects by Colorcinch
