Flow’s DeFi Ecosystem Expands With Disney Partnership and Stablecoin Growth

Flow (FLOW), a Proof-of-Stake Layer-1 blockchain, posted impressive ecosystem gains in the second quarter of 2025, highlighted by rising decentralized finance (DeFi) activity, stablecoin growth, and mass adoption through its partnership with Disney. Despite this momentum, FLOW’s spot market price remains rangebound, with technical indicators suggesting a potential reversal if bullish pressure builds.

DeFi Growth Accelerates

A report from crypto analytics firm Messari shows that Flow’s Total Value Locked (TVL) surged 46.3% quarter-over-quarter, climbing to $68 million by the end of June and reaching $79.98 million at press time. The increase underscores growing user activity and a larger inflow of assets to the network.

Smart contract deployments also hit a new milestone, with 45,239 contracts deployed since October 2024. Meanwhile, liquidity strengthened as PayPal’s PYUSD stablecoin reached $26.2 million in circulation by June 30, accounting for 65.8% of Flow’s stablecoin supply. Circle’s USDC makes up most of the remainder, with $13.6 million.

As of this week, Flow’s total stablecoin market capitalization sits at $36.89 million, with PYUSD dominating at 64.7%, marking a slight decline since late July.

Disney Partnership Drives Mass Adoption

Beyond DeFi, Flow continues to push consumer adoption through its collaboration with Disney’s Pinnacle Partnership, which onboarded a record 50 million Disney+ subscribers into Flow-powered digital collectibles. The integration could serve as a catalyst for retail engagement, potentially translating into stronger spot market demand as users migrate from mainstream entertainment platforms into blockchain applications.

Technical Outlook: Consolidation With Bullish Potential

Despite ecosystem growth, FLOW’s price remains relatively stagnant. At $0.373 as of Friday, the token is consolidating between its recent pivot high of $0.458 (July 21) and support at $0.345 (August 2). The asset continues to trade below its 50-day Exponential Moving Average (EMA) at $0.381, while the declining 100- and 200-day EMAs signal lingering long-term bearish pressure.

Momentum indicators, however, show potential for a shift. The Stochastic RSI is approaching oversold territory, hinting at a possible bullish crossover that could trigger renewed buying interest. The Relative Strength Index (RSI) remains neutral at 46, suggesting neither overbought nor oversold conditions.

Data from CoinGlass indicates elevated long positioning, with 50.8% of taker volume on the buy side, though slightly down from 52.17% the day before. This signals a cautious but growing risk-on sentiment among traders.

Key Levels to Watch

For a sustained bullish reversal, FLOW would need a decisive close above the 200-day EMA at $0.431, opening the door to retest the July 21 peak of $0.458. On the downside, a close below $0.345 could deepen the correction toward the June 22 low of $0.289.

Outlook

Flow’s ecosystem is clearly expanding, bolstered by Disney’s mainstream integration and stablecoin-driven liquidity growth. Yet the disconnect between fundamentals and price highlights market hesitation. If technical indicators align with growing investor confidence, FLOW may be poised for a breakout from its consolidation phase.