Flow Q2 DeFi Report: Record Growth in TVL, Smart Contracts, and Disney Partnership

Flow's Q2 DeFi Boom: A Detailed Look

The Flow Decentralized Finance (DeFi) ecosystem witnessed substantial growth in the second quarter, with a 46% increase in Total Value Locked (TVL). The triple-digit surge in smart contracts and PayPal’s PYUSD stablecoin supply in the last quarter signals increased activity on the network. A landmark collaboration with Disney's Pinnacle Partnership via Disney+ brought over 50 million subscribers onboarded to Flow. Despite this ecosystem boost, the growth hasn't fully translated into spot market demand, as technical indicators suggest a potential trend reversal amidst heightened bullish sentiment.

TVL and Smart Contract Growth

Messari, a crypto-focused data analytics firm, released a report detailing Flow’s DeFi ecosystem growth over the second quarter of 2025. The Total Value Locked (TVL) on Flow had increased by $68 million by the end of Q2, representing a 46.3% Quarter-on-Quarter (QoQ) growth. As of the time of this writing, the TVL stands at $79.98 million, signaling a larger inflow of digital assets onto the network. Further supporting the TVL surge, the number of smart contracts deployed on the network reached a record high of 45,239 since October 2024. Additionally, liquidity on the network increased, with the PYUSD supply reaching $26.2 million on June 30, dominating 65.8% of the stablecoin supply on Flow. Circle’s USDC stablecoin acquired the rest of the market share, with $13.6 million. As of Friday, the stablecoin market capitalization on Flow stands at $36.89 million, with the PYUSD dominating 64.7%, indicating a minor decline in liquidity since July 30.

Disney Partnership Impact

Flow’s collaboration with Disney’s Pinnacle Partnership added over 50 million subscribers with digital collectibles. Spot market demand is expected to increase as Flow’s DeFi ecosystem grows, with investors rotating profits from Bitcoin (BTC) and Ethereum (ETH) into other altcoins. This partnership could prove a significant catalyst for wider Flow adoption.

Stagnant Price Movement and Bullish Bets

FLOW trades at $0.373 at press time on Friday, maintaining a sideways track on the daily chart, between the previous two pivot points of $0.458 on July 21 and $0.345 on August 2. The multi-role architecture token struggles to overcome the 50-day Exponential Moving Average (EMA) at $0.381, while the declining 100- and 200-day EMAs suggest a long-term bearish trend in motion. The Stochastic Relative Strength Index (Stoch RSI) indicates the average line approaching the oversold boundary. A crossover in the Stoch RSI average lines for a positive turnaround would mark a bullish shift in trend momentum, potentially triggering a buy signal for sidelined investors. Additionally, the Relative Strength Index (RSI) at 46 hovers relatively flat, below the halfway line, indicating a neutral signal. CoinGlass data shows that the elevated taker buy volumes, representing 50.8% long positions, have dropped from 52.17% on Thursday. This indicates that risk-on sentiment among investors is gradually increasing.

Future Outlook for FLOW

To reinstate a bullish run, FLOW should mark a decisive close above the 200-day EMA at 0.431, targeting the July 21 peak at $0.458. Looking down, a close below the $0.345 low from August 2 could extend the pullback to the $0.289 low from June 22. FLOW's future price action will depend on the network's ability to sustain the growth witnessed in Q2 and capitalize on its partnerships, such as the Disney collaboration.