Ethereum DeFi is back on the menu, boys, as ETH co-founder Vitalik Buterin says decentralized finance has reached a point of maturity and security where it can now function “like a primary bank account.”
Speaking at a Dromos Labs event on Wednesday, Buterin argued that DeFi has evolved beyond the risky speculations of the 2020 era and is finally stable enough to serve as a real alternative to traditional banking.
“We will see more and more cases of people, institutions and all kinds of users around the world using this account as their primary bank account,” Buterin said.
According to Buterin, the evolution of safety standards since 2019 has happened “night and day”. Protocol audits, on-chain assurance systems, and formal verification tools have significantly reduced exploitation risks. He admitted that high-profile breaches, such as the Balancer hack, are still happening, but stressed that the overall infrastructure is much more resilient.
“There is a night and day difference in the kind of safety you can expect in 2025 versus 2020 or 2019,” Buterin said.
Blockchain analytics firm Elliptic estimates that the total value lost to hacks in 2025 is higher than last year, but largely due to a single catastrophic exploit by Bybit in February. Beyond this one-off shock, the figures indicate a broader cooling of systemic risk in DeFi.
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DeFi Llama boasts a total value locked of nearly $135 billion, up more than 40% this year, while operating losses have fallen 38% since 2022. Together, this supports Buterin’s argument that DeFi is growing.
Alongside its remarks, the Ethereum Foundation released The Trustless Manifesto, a document warning against creeping centralization. He criticizes trends like hosted RPC nodes, centralized L2 sequencers, and cross-chain custodians. According to Buterin, these characteristics threaten the decentralized philosophy of the ecosystem.
“Every system begins with good intentions,” the manifesto declares. “Over time, gateways become platforms. Platforms become owners. And owners decide who can enter and what to do.”
Buterin also highlighted Ethereum’s increased scalability, noting increasing mainnet gas limits and the explosive growth of Layer 2 networks. New systems, like Lighter, capable of processing over 10,000 transactions per second, demonstrate that throughput is no longer a dream on a roadmap.
