IOTA DeFi Awakens — Massive TVL Growth Signals Explosive Start

• IOTA’s DeFi activity exploded, hitting over $16 million TVL after smart contracts launch.
• Swirl, Pools Finance, and Virtue now drive diverse usage on IOTA’s base network structure.

The IOTA network has seen an unprecedented upswing in DeFi activity, with its total value locked (TVL) soared from zero to over $16 million in just one week. This surge follows the Rebased upgrade that introduced smart contracts and liquid staking directly on its Layer 1 network.

According to DeFiLlama data, IOTA’s TVL peaked at $16.14 million but slightly pulled back to $15.51 million. The Layer 1 growth aligns with the rollout of new functionalities that support developers and asset deployment directly on the base protocol.

IOTA’s Layer 1 uses a Tangle-based structure instead of traditional blockchains, allowing fee-free transactions and scalability. This architecture has made the network especially useful for microtransactions and Internet of Things (IoT) use cases, laying a strong foundation for its DeFi expansion.

Liquid Staking Protocol Swirl Hits $14.78M in TVL

Swirl, the first liquid staking platform built on IOTA, now holds $14.78 million in TVL. Despite a 17.75% weekly drop, its monthly growth is close to 50%, indicating lasting interest. Alongside Swirl, other projects are gaining traction. Pools Finance, a decentralized exchange, has reached $9.63 million in TVL.

Virtue, a protocol based on collateralized debt positions (CDPs), holds $5.88 million with a daily growth rate of 1.81%. These protocols are diversifying the activity within the network, which previously lacked this level of on-chain participation.

Crypto enthusiast Salima wrote on X:

IOTA has awakened in DeFi, adding, This is just the beginning… what’s coming next might blow everything wide open.

IOTA is not just showing technical traction. Strategic meetings are taking place globally. A closed-door meeting between IOTA co-founder Dominik Schiener and Malaysia’s Minister of Science, Technology, and Innovation followed their appearance at Malaysia Blockchain Week 2025. The discussion is viewed as a signal for potential state-backed collaboration in Southeast Asia.

In another development, we reported, IOTA’s digital platform TWIN is also becoming embedded in Africa’s $3.4 trillion trade bloc, AfCFTA. TWIN aims to connect the 1.3 billion people across the continent by digitizing trade processes. Its model does not force adoption but integrates gradually, which has helped it gain a foothold in regional infrastructure.

Analyst Predicts IOTA’s 312% Price Surge

Beyond its DeFi push, market analysts see bullish signals forming. Popular X analyst Crypto Dream pointed to similarities between the current price trend and IOTA’s 2020 breakout. He indicated that if the past pattern repeats, a rally toward $1 is plausible.

On his chart, Crypto Dream marked key resistance zones and projected a 312% rise from current levels. This analysis is fueling speculation that the token might follow past behavior, especially with the current ecosystem growth as a support.

#IOTA There is a possibility that the coin is on the verge of a real rally! If history repeats itself, we can expect a strong impulse in the key area of 1$! $IOTA pic.twitter.com/k8szmMKTBX

— Crypto Dream (@_Crypto_Dream) July 23, 2025

As of now, the token trades at $0.20, with a market cap of $800 million and a fully diluted valuation of $934.14 million. The token price has increased by 2.02% in the past 24 hours, while the network’s growing TVL reflects rising confidence among users and developers.