On-Chain Asset Management AUM Soars 118% to $35B in 2025 — DeFi Matures

On-chain asset management is booming in 2025, with total AUM climbing 118% to $35 billion, highlighting institutional maturity in decentralized finance.

Crypto trading firm Keyrock reports that assets under management (AUM) in on-chain platforms have more than doubled this year, rising from around $16 billion to $35 billion. This boom is largely fueled by growth across automated yield vaults, discretionary strategies, structured products, and on-chain credit protocols. 

Discretionary strategies led the surge, with 738% year-to-date growth, as on-chain fund managers offer more actively managed exposure rather than passive yield alone. 

Protocol concentration is notable: Morpho, Pendle, and Maple collectively hold ~31% of total AUM. Morpho’s TVL is ~ $7.14B, Pendle ~ $8.3B, and Maple ~ $2.7B by recent stats. 

Smaller users (so-called “shrimp” investors, i.e. < $10,000) contribute volume, but large allocators (“dolphins” and “whales”) control the bulk of capital (70%–99%), demonstrating that institutional capital is driving the expansion. 

Performance metrics also stand out:

• Automated yield strategies reportedly outperform passive alternatives by ~186 basis points after fees. 
• Structured products, discretionary strategies, and on-chain credit yield competitive returns: ~10.3%, ~9.7%, ~7.5% respectively (after fees) in some models. 

Looking ahead, Keyrock predicts on-chain AUM could approach $64–$85 billion by 2026 if current momentum continues. 

Risks remain: smart contract bugs, liquidity constraints, regulatory pressure, and capital concentration could derail gains. But the direction is clear—DeFi is steadily evolving from speculative playground to institutional-grade finance.

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