Portals DeFi Weekly - 27th February, 2026

Welcome to the Portals DeFi Weekly, your weekly dose of the latest insights and analysis in DeFi.

Market Pulse

• Total Market Cap: $2.36T (+2.6%)
• DeFi TVL: $94.736B (-1.32%)
• 24h Volume: $115.98B
• Fear & Greed: 13 (Extreme Fear)
• BTC Dominance: 55.9%

Summary

The market has shown signs of a tentative recovery this week, with Bitcoin briefly touching $70,000 before settling in the $66,000-$68,000 range. Total market cap increased by 2.6% to $2.36 trillion, while DeFi TVL saw a slight decrease of 1.32% to $94.736 billion. Trading volume remains robust at $115.984 billion. Despite the price recovery, market sentiment remains in a state of "Extreme Fear" at 13, a slight improvement from last week's 9. This indicates that while prices are rising, underlying fear and uncertainty persist among investors.

The Yield Market Pulse

This week's yield landscape is characterized by a surge in high-yield opportunities, particularly in the Base and Arbitrum ecosystems. The top opportunities are a mix of yield-bearing vaults and lending markets, with investors showing a strong appetite for risk in pursuit of higher returns.

Top Opportunities This Week

Pendle Market yoVaultETH 26MAR2026

• APY: 41.62%
• Chain: BASE
• Type: Yield
• TVL: 1.89M
• Risk: Medium

SY yoVaultEuro

• APY: 31.53%
• Chain: BASE
• Type: Yield
• TVL: 215.12k
• Risk: Medium

Morpho USD₮0 / kHYPE

• APY: 14.22%
• Chain: HyperEVM
• Type: Lending
• TVL: 515.10k
• Risk: Medium

SY Upshift Core USDC

• APY: 23.07%
• Chain: Ethereum
• Type: Yield
• TVL: 4.84M
• Risk: Medium

Lagoon Angmar Capital

• APY: 29.84%
• Chain: Arbitrum
• Type: Yield
• TVL: 2.65M
• Risk: Medium - High

DeFi News

Key Developments in DeFi This Week

The final week of February 2026 was characterized by a major strategic push from the Ethereum Foundation, significant institutional milestones, and a notable regulatory shift in the United States. While individual protocols like Aave reached historic highs in volume, the ecosystem also faced security setbacks with the shutdown of Step Finance following a major exploit.

• Coinbase Rolls Out Tokenized Stock Trading to All US Users: Coinbase has expanded its tokenized stock trading service to all users in the United States, allowing for 24/5 trading of stocks and ETFs.
• Ethereum's "Defipunk" Initiative: On February 23, 2026, the Ethereum Foundation launched a new dedicated DeFi unit. This initiative aims to move beyond incremental upgrades toward "deeper structural innovation," focusing on making the financial system more permissionless, private, and secure.
• Aave Horizon Becomes Largest RWA Market on Ethereum: Aave announced that its Horizon market is now the largest for real-world-asset (RWA)-backed loans on Ethereum.
• Aave's $1 Trillion Milestone: Aave officially surpassed $1 trillion in cumulative loan volume this week. This milestone is seen as a key marker for the maturation of on-chain credit markets.
• Starknet Introduces strkBTC: A new Bitcoin-based asset, strkBTC, was announced on February 26, 2026. It is designed to bring private transactions and shielded balances to Bitcoin holders within the Ethereum Layer 2 ecosystem.
• Step Finance Shutdown: Following a $40 million treasury theft on January 31, 2026, the Solana-based dashboard Step Finance officially announced the wind-down of its operations on February 23, 2026.
• Moonwell Exploit: The Layer 2 lending protocol Moonwell suffered a $1.78 million exploit this week due to a pricing oracle misconfiguration.

Portals Platform Updates

Improved and advanced Portals Explorer Homepage is here! Now you have a unified and intuitive interface for all your DeFi activities, from in-depth analytics to seamless execution.

• At-a-Glance Market Overview: Instantly gauge the market with high-level rates for ETH Staking, Stablecoins, and BTC, displayed prominently at the top of the page.

The new homepage features several dynamic sections to help you find the best opportunities:

• Trending Now: Discover what's currently popular in the market, with real-time data on the most active vaults and strategies.

• Top Opportunities: This section is split into two categories to match your investment style:
• Yield Momentum: Identifies the top performers based on weekly APY growth.
• Most Trusted: Highlights opportunities with the highest TVL, indicating strong community trust.

What's New: Stay ahead of the curve with:

• Fresh Opportunities: A list of recently discovered yield opportunities.
• Recently Verified: Positions that have been claimed and verified on Portals Explorer, adding a layer of authenticity.

Gain deep insights into market movements and capital flows with our new leaderboards:

• Top Gainers & Losers: Track the biggest weekly changes in TVL.
• Net Flow Leaders: See where capital is moving with a clear view of net deposits and withdrawals.

This redesigned homepage empowers you to make more informed decisions by providing a comprehensive, real-time, and verifiable overview of the entire DeFi landscape.

The State of Chains

Top DeFi Protocols by TVL

The DeFi protocol landscape remains dominated by established players, with Aave, Lido, and EigenCloud holding the top spots. The top 7 protocols by TVL show a mix of lending, liquid staking, and restaking services, highlighting the key pillars of the current DeFi ecosystem.

Chain Performance Analysis

• Ethereum continues to be the dominant force in DeFi, with a TVL of $54.072 billion and the highest number of protocols. However, its 7-day TVL change is a modest +0.20%, and its 1-month change is a significant -23.55%, indicating a potential cooling-off period after a period of high growth.
• Solana is showing strong momentum, with a 7-day TVL increase of +2.19% and the highest number of active addresses at 2.14 million. Its DEX volume is also impressive at $2.43 billion, second only to Ethereum.
• BSC remains a major player with a TVL of $5.631 billion and the highest number of active addresses at 2.6 million. Its 7-day TVL change is a slight +0.25%.
• Bitcoin is seeing a surge in DeFi activity, with a TVL of $4.409 billion. However, it has seen a significant 7-day TVL decrease of -12.24%, suggesting some volatility in its nascent DeFi ecosystem.
• Arbitrum and Base are leading the L2 race, with TVLs of $2.04 billion and $3.862 billion respectively. Both chains have a large number of protocols and are seeing significant DEX volume, indicating a thriving ecosystem.
• Sonic and Berachain are the newcomers to watch, with impressive 7-day TVL growth of +40.79% and +3.78% respectively. These chains are attracting users and capital with their innovative features and high-yield opportunities.

Looking Ahead: Market

Key Catalysts to Watch

The market is at a pivotal point, with several key catalysts that could shape its direction in the coming weeks and months.

• Institutional Adoption: The continued influx of institutional capital, driven by products like Bitcoin ETFs and tokenized assets, will be a major factor. The success of Coinbase's tokenized stock trading and the potential for similar offerings from other major players could bring a new wave of liquidity and users into the DeFi ecosystem.
• Regulatory Clarity: The proposed stablecoin regulations in the US, along with other regulatory developments around the world, will be closely watched. Clear and supportive regulations could provide a significant boost to the market, while a restrictive approach could stifle innovation and growth.
• L2 and Cross-Chain Innovation: The growth of L2 solutions like Arbitrum and Base, as well as cross-chain interoperability protocols, will be crucial for scaling the DeFi ecosystem. The ability to move assets and data seamlessly between different chains will unlock new possibilities for developers and users.
• AI-DeFi Convergence: The integration of AI and DeFi is still in its early stages, but it has the potential to be a game-changer. AI-powered tools for trading, risk management, and portfolio optimization could make DeFi more accessible and efficient for a wider range of users.
• Market Outlook: The market outlook is cautiously optimistic. While the recent price recovery is encouraging, the underlying fear and uncertainty in the market should not be ignored. The key catalysts mentioned above will play a major role in determining whether the market can sustain its upward momentum and enter a new phase of growth.

About portals.fi: portals.fi is the DeFi Super App. A one-click gateway to the entire on-chain economy. Powered by real-time data and seamless execution, portals.fi connects traders to over 20 million assets, thousands of protocols, and every major blockchain.

Disclaimer: The content of this newsletter is for informational purposes only. It is not investment advice. Please do your own research and consult with a qualified financial advisor before making any investment decisions. DeFi investments carry significant risks, and past performance does not guarantee future results. More details here.