Six-Protocol DeFi Showdown: HyperEVM vs Ethereum

Published: 2025-08-12 02:00:45 |

A new DeFi ecosystem rivalry is taking shape around six cornerstone protocols: Ethereum (ETH), Aave (AAVE), Pendle (PENDLE), Ethena (ENA/USDe), Bitcoin (BTC/WBTC) and the emerging HyperEVM/Hyperliquid (HYPE). Together they account for over 60% of DeFi TVL on Ethereum and form a tightly linked network that powers looped lending, stablecoin issuance and collateral swaps. Key dynamics include Hyperlend’s 10% revenue share with Aave, the deployment of Ethena’s USDe on HyperEVM, and Pendle’s expansion into perpetual derivatives denominated in BTC and ETH. Bitcoin provides pure asset value, while Ethereum delivers dual value—its native token and the EVM DeFi stack. HyperEVM seeks to siphon traditional trading flows on-chain through HIP3, CoreWriter and integrations with Solana via Unit Protocol. This interconnection boosts capital efficiency and on-chain liquidity, reinforcing ETH’s value through gas fees and stablecoin circulation. While Aave remains the safest on-chain lending infrastructure, HyperEVM’s aggressive expansion could reshape EVM competition. For traders, the evolving six-protocol network signals growing TVL, higher leverage capacity and diversified collateral options—factors that could drive bullish momentum across DeFi markets.

Bullish

The deep interconnection among Ethereum, Aave, Pendle, Ethena, Bitcoin and HyperEVM creates a highly efficient capital network that can drive on-chain liquidity, TVL growth and diversified collateral paths. Historical precedents—like the 2020 DeFi Summer—show that tighter protocol linkages often lead to rapid TVL expansion and bullish sentiment. Aave’s secure lending backbone, combined with HyperEVM’s aggressive on-ramp of trading flows via HIP3 and cross-chain bridges, could unlock new leverage curves and stablecoin use cases. In the short term, traders may see rising token demand and narrower spreads across these protocols. Over the long run, the evolving six-protocol mesh can reinforce ETH’s value through fee generation and stabilize DeFi yields, underpinning sustained bullish market behavior.