italik Buterin, co-founder of Ethereum, stated that decentralized finance (DeFi) has reached a turning point. During a pre-recorded address at a Dromos Labs event on Wednesday, Buterin affirmed that DeFi as a form of savings is “finally viable.” Furthermore, he noted that this technology is beginning to rival traditional banking in security and maturity.
The Ethereum DeFi ecosystem shows robust figures. It currently processes over $1.9 trillion in transactions per quarter. The sector maintains a $77 billion market and over 312 million active users as of mid-2025. Average DeFi savings yields hover around 8.2%, contrasting sharply with the approximate 2.1% in traditional banking.
Has DeFi moved past the era of high-risk speculation?
Buterin highlighted a significant evolution since the speculative era of 2020. He described the difference between 2019 and 2025 as “night and day.” Although he acknowledged recent breaches, he insisted that smart contract security has improved substantially. This shift is moving the sector from speculation toward stability and real-world use.
Concurrently, Buterin and the Ethereum Foundation published “The Trustless Manifesto.” This document warns developers about the dangers of centralization. It criticizes the trend of sacrificing decentralization for convenience, as seen in some Layer 2 sequencers. The manifesto reinforces Ethereum’s foundational principles.
Buterin urged developers to uphold Ethereum’s principles like open-source code and censorship resistance. He emphasized the “walkaway test,” which ensures users can always recover their funds. With Layer 2 networks securing over $50 billion and 75% of the world’s tokenized real-world assets on the network, DeFi as a form of savings appears to be consolidating.
