DeFi total value locked (TVL) climbed to $165 billion on April 17, 2025, marking a 1% increase, driven by Bhutan’s exploration of green cryptocurrency mining using hydropower, as reported by Reuters. The sovereign wealth fund’s CEO highlighted this move to boost the economy and curb brain drain, with potential DeFi protocols leveraging this eco-friendly energy source to attract global liquidity. This aligns with growing interest in sustainable finance, but the small nation’s capacity to influence a $165 billion market raises questions about scalability and real-world impact.
Critics argue that Bhutan’s initiative, while innovative, may face challenges from regulatory hurdles and the volatility of crypto markets, especially if China’s disposal of its $1.4 billion crypto hoard (per River estimates) floods the market. Social sentiment on platforms like X suggests cautious optimism, with some viewing it as a model for green DeFi, while others warn of greenwashing risks if energy claims aren’t verified. The interplay between Bhutan’s ambitions and China’s actions could reshape DeFi liquidity dynamics in the coming months.