Ethereum's transition to Proof of Stake (PoS) with the Ethereum 2.0 upgrade is expected to significantly improve the DeFi ecosystem. PoS not only reduces Ethereum’s energy consumption but also improves scalability and transaction finality, which are critical for DeFi applications. With PoS, Ethereum can handle more transactions per second (TPS), reducing congestion and gas fees, which have been major barriers to DeFi growth. Additionally, PoS incentivizes decentralized validator participation, fostering more network security and decentralization. With lower fees and faster confirmation times, DeFi platforms will become more accessible, increasing user adoption and enabling new financial products to thrive on the Ethereum network by 2025.