The world of blockchain has rarely lacked hype. Yet the past quarter has brought something less common: measurable progress.
Messari, a research outfit that tracks digital assets, has published a report showing that Flow, a blockchain best known for powering NBA and NFL collectibles, as well as digital tie-ins with Disney and Ticketmaster, has had its best three months yet.
Flow’s total value locked (TVL) — the sum of crypto parked in its decentralised finance (DeFi) protocols — hit $68m in the second quarter. That was 46% higher than in the first, and a faster clip than in earlier quarters. In the sometimes fickle world of digital finance, growth of this scale suggests more than passing fashion. It reflects both a broader embrace of stablecoins and an expansion of Flow’s developer ecosystem.
Stablecoins at the heart of on-chain finance
Stablecoins, digital tokens pegged to fiat currencies, have become the beating heart of on-chain finance. Regulators in Washington are inching towards rules for dollar-denominated tokens, while Wall Street institutions are testing their own experiments. Flow has benefitted from this surge in interest. PayPal’s stablecoin, PYUSD, saw its supply on Flow jump by more than 200% in the quarter, reaching $26m. That alone accounts for nearly 40% of all value locked on the chain.
But finance is only part of Flow’s story. Its roots lie in consumer brands and non-fungible tokens (NFTs). In April, Disney used Flow to launch Pinnacle, a platform that lets Disney+ subscribers collect and trade digital pins. Some 50m users were given access: it was arguably the largest mass-market onboarding into Web3 so far. For Flow, long pigeonholed as a niche chain for basketball highlights, the Disney tie-up shows how mainstream entertainment can still drive blockchain adoption.
Surge in smart-contract activity
Another striking development is the surge in smart-contract activity. Developers deployed more than 45,000 new contracts on Flow in April, a five-fold increase on the previous quarter. This suggests that coders are beginning to view the chain as more than a home for speculative collectibles. As in other areas of the cryptosphere, hype is giving way to infrastructure.
DeFi activity, meanwhile, is spreading. KittyPunch, Flow’s largest trading hub, grew by 72% to $33m locked. MORE Markets, a lending protocol, grew even faster, more than tripling to $16.6m. Both platforms now account for the bulk of Flow’s financial activity. To sceptics, such sums may look modest beside Ethereum, where tens of billions in assets are at play. Yet in the context of Flow’s smaller base, the expansion is striking.
Flow’s dominant liquid-staking token
Staking, too, is evolving. Flow now has a dominant liquid-staking token, ankrFLOW, mirroring trends on Ethereum. Liquid staking, in which users earn rewards without locking assets, increases participation but also raises concerns about centralisation. If one staking provider grows too powerful, the supposed decentralisation of the chain is undermined. Flow may soon face these same debates.
For now, its trajectory is clear enough. The convergence of consumer brands and financial infrastructure is beginning to take shape on Flow. Stablecoins give it relevance in the emerging world of digital money; mass-market experiments from entertainment giants give it reach. Whether this blend of finance and fandom proves sustainable is another matter. For a blockchain once known chiefly for basketball highlights, however, the second quarter of 2025 marks a new chapter.
