Tokenized ETF Market Hits $674M, Yet Only Small Fraction Used in DeFi

The market for tokenized ETFs is growing rapidly, reaching a market cap of $674 million. According to crypto commentator @tokenterminal, this surge indicates a shift towards decentralized finance (DeFi). However, only 9.8% of the market cap is currently deposited into DeFi venues, highlighting a significant gap in adoption.

The tokenized ETF market has shown remarkable momentum, with a 44.9% increase in market cap over the past 90 days. Despite this growth, the current deposits into DeFi venues amount to just $66.1 million. This indicates that productive use of these assets is still in its early stages.

The rapid growth in deposits suggests a changing landscape as more investors look to leverage DeFi opportunities. Solana and other chains are becoming key players in this emerging market, capturing the majority of tokenized ETF activity.