- DeFi investors are shifting toward safer bets as Risk Curator Protocols near $10B, showing trust in low-risk crypto yields.
- Figure’s Heloc token crash wiped out billions in minutes, exposing how fragile real-world asset tokens can still be.
- Trump’s pick of pro-crypto Michael Selig for CFTC chair boosts market confidence and fuels fresh optimism in regulation.
The decentralized finance (DeFi) sector is witnessing a major behavioral shift as investors increasingly favor lower-risk yield strategies. According to data from CryptoRank.io and DefiLlama, the total value locked (TVL) in Risk Curator Protocols reached $9.86 billion on October 28, 2025, placing the sector just shy of the $10 billion milestone.
Activity within this segment stayed relatively flat from October 2023 through early 2024, with TVL below the $1 billion mark. However, things began to change in October 2024, when TVL crossed that level and climbed steadily to $2 billion by year’s end. The pace quickened in early 2025, with growth becoming more aggressive between January and April, reaching almost $3 billion.
By mid-2025, the trend became explosive. In July, TVL surged from $4 billion to $5 billion within weeks. The rally extended through August and September, with minimal corrections. However, the real turning point came in October 2025, when locked value skyrocketed from roughly $6 billion to $9.86 billion—marking the fastest accumulation period in the sector’s history.
Market Shock from Figure Heloc Token
Meanwhile, the market also faced turbulence from Figure, a blockchain-based fintech firm. Its Figure Heloc token, tied to $13 billion in home equity loans, suffered an 81% flash crash on October 24, falling from $1 to $0.19 before recovering.
The cause remains unclear, though the event erased over $10 billion in market value within minutes. “It’s a bad look for the firm,” one analyst noted, highlighting growing concerns about real-world asset (RWA) tokenization liquidity.
Additionally, the tokenization of real-world assets has grown into an $18 billion market this year, signaling both progress and fragility.
Regulatory Moves Strengthen Optimism
Adding to the weekend’s optimism, President Trump nominated Michael Selig to chair the CFTC, following controversies involving Brian Quintenz and the Winklevoss twins. Selig, known for his pro-crypto stance, currently serves as chief counsel for the SEC’s Crypto Task Force.
