The growth of the DeFi market has significantly impacted Ethereum's price by driving demand for ETH, the native cryptocurrency powering the Ethereum blockchain. DeFi platforms, built primarily on Ethereum, rely on smart contracts for decentralized lending, borrowing, and trading, requiring users to hold and spend ETH for transaction fees (gas). As DeFi adoption surges—total value locked in DeFi protocols rose from $1 billion in 2020 to over $80 billion by 2025—ETH's utility and scarcity increase, pushing its price upward. Additionally, staking in Ethereum 2.0 locks up ETH supply, amplifying this effect. Data from X shows bullish sentiment among DeFi enthusiasts correlating with ETH price spikes. However, risks like smart contract vulnerabilities and regulatory uncertainty could temper this growth, though Ethereum’s dominance in DeFi continues to fuel its price momentum.