Quarters where Flow Records is still growing into a strong quarter: Messari Report

Flow’s Defi Ecosystem is growing rapidly, with Defi TVL growing 46% quarterly to $68 million.

When rejected as a time-old NFT chain, the flow (flow) slowly makes a comeback. On Thursday, August 21st, Messari released a report on the state of the flow ecosystem in the second quarter of 2025. The report reveals that TVL’s 46% jump is $68 million, making it the best performance ever.

There is less growth from collectibles, less growth from stubcoins, liquid staking, and defi. In particular, Flow has shown great interest in Stablecoins, with PayPal’s PYUSD supply rising to $26.2 million to 211.9% QOQ. This makes Pyusd the largest Stablecoin on the network.

At the same time, developer activity saw a boom, with a 473% QOQ jump in smart contract deployment. April was the most active month in contract deployments, reaching 45,239. Furthermore, following the Layer Zero integration, the average daily transaction has risen by 602% to 40.1k, which has further increased user interest.

Deploying smart contracts on flows | Source: Messari

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Flow pivot from early NFT strategies

An increase in activity indicates that the flow was successfully pivoted from the initial NFT focus. The creators of the Ethereum-based (ETH) Cryptokitties NFTS, launched by Dapper Labs in 2020, have seen a major change in Flow. At its founding, it was a response to traffic jams created by encryption at Ethereum. The flow was assumed to be a Layer-1 chain capable of handling mass consumer dap.

At the time, it was riding the early NFT waves and securing partnerships with giants such as Disney, NFL and NBA. However, with a decline in interest in digital collectibles, Flow shifted its strategy and focused on Defi.

read more: NFT sales range from 18% to $116.9 million, with polygon defeating Ethereum